PLAYSTUDIOS (NASDAQ:MYPS) and Roku (NASDAQ:ROKU) Head-To-Head Analysis

Roku (NASDAQ:ROKU) and PLAYSTUDIOS (NASDAQ:MYPS) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

86.3% of Roku shares are owned by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are owned by institutional investors. 13.5% of Roku shares are owned by insiders. Comparatively, 14.9% of PLAYSTUDIOS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Roku and PLAYSTUDIOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roku	6.82%	13.73%	8.34%
PLAYSTUDIOS	-20.65%	-19.61%	-15.33%

Valuation & Earnings

This table compares Roku and PLAYSTUDIOS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roku	$5.21 billion	4.46	$88.36 million	$2.34	66.90
PLAYSTUDIOS	$235.10 million	0.19	-$28.64 million	($3.60)	-1.03

Roku has higher revenue and earnings than PLAYSTUDIOS. PLAYSTUDIOS is trading at a lower price-to-earnings ratio than Roku, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Roku and PLAYSTUDIOS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roku	0	19	7	1	2.33
PLAYSTUDIOS	1	2	1	0	2.00

Roku presently has a consensus target price of $156.17, indicating a potential downside of 0.24%. PLAYSTUDIOS has a consensus target price of $12.50, indicating a potential upside of 237.02%. Given PLAYSTUDIOS’s higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than Roku.

Risk and Volatility

Roku has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Summary

Roku beats PLAYSTUDIOS on 13 of the 15 factors compared between the two stocks.

About Roku

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.

About PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.