Boyd Gaming (NYSE:BYD) vs. Pacific Software (OTCMKTS:PFSF) Critical Analysis

Pacific Software (OTCMKTS:PFSF) and Boyd Gaming (NYSE:BYD) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

76.8% of Boyd Gaming shares are held by institutional investors. 8.6% of Pacific Software shares are held by insiders. Comparatively, 22.8% of Boyd Gaming shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Pacific Software and Boyd Gaming, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Software	0	0	0	0	0.00
Boyd Gaming	0	10	5	1	2.44

Boyd Gaming has a consensus target price of $94.69, indicating a potential upside of 12.61%. Given Boyd Gaming’s stronger consensus rating and higher probable upside, analysts plainly believe Boyd Gaming is more favorable than Pacific Software.

Profitability

This table compares Pacific Software and Boyd Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Software	N/A	N/A	N/A
Boyd Gaming	44.34%	22.52%	8.80%

Valuation & Earnings

This table compares Pacific Software and Boyd Gaming”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Software	N/A	N/A	N/A	N/A	N/A
Boyd Gaming	$4.09 billion	1.49	$1.84 billion	$22.72	3.70

Boyd Gaming has higher revenue and earnings than Pacific Software.

Summary

Boyd Gaming beats Pacific Software on 10 of the 10 factors compared between the two stocks.

About Pacific Software

Pacific Software, Inc., a development stage company, engages in designing, developing, licensing, and operating transactional solutions worldwide. The company manages BOAPIN.com, a multi-lingual and multi-faceted commodities trading platform designed for international clients, traders, and subscribers. It is also postured for investments, mergers, acquisitions, and business combination strategies for various technologies and digital platforms. The company intends to deliver its trading solutions to agriculture, fertilizers, chemicals, cosmetics, electronics, and equipment industries. The company was formerly known as Pacific Mining, Inc. and changed its name to Pacific Software, Inc. in November 2006. Pacific Software, Inc. was founded in 2005 and is headquartered in Toronto, Canada.

About Boyd Gaming

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.