Contrasting SJM (OTCMKTS:SJMHF) & Playtika (NASDAQ:PLTK)

SJM (OTCMKTS:SJMHF) and Playtika (NASDAQ:PLTK) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Insider & Institutional Ownership

11.9% of Playtika shares are owned by institutional investors. 5.1% of Playtika shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for SJM and Playtika, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SJM	0	2	0	0	2.00
Playtika	0	5	3	0	2.38

Playtika has a consensus price target of $6.00, suggesting a potential upside of 65.75%. Given Playtika’s stronger consensus rating and higher possible upside, analysts plainly believe Playtika is more favorable than SJM.

Earnings & Valuation

This table compares SJM and Playtika”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SJM	$3.69 billion	0.58	$410,000.00	N/A	N/A
Playtika	$2.73 billion	0.50	$162.20 million	$0.24	15.08

Playtika has lower revenue, but higher earnings than SJM.

Profitability

This table compares SJM and Playtika’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SJM	N/A	N/A	N/A
Playtika	3.16%	-114.44%	3.23%

Volatility and Risk

SJM has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

Playtika beats SJM on 9 of the 12 factors compared between the two stocks.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

About Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.