Contrasting UbiSoft Entertainment (OTCMKTS:UBSFY) & Playtika (NASDAQ:PLTK)

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

Profitability

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

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

Insider & Institutional Ownership

0.1% of UbiSoft Entertainment shares are owned by institutional investors. Comparatively, 11.9% of Playtika shares are owned by institutional investors. 4.8% of Playtika shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for UbiSoft Entertainment and Playtika, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UbiSoft Entertainment	1	0	0	1	2.50
Playtika	0	5	3	0	2.38

Playtika has a consensus price target of $6.00, indicating a potential upside of 73.91%. Given Playtika’s higher probable upside, analysts plainly believe Playtika is more favorable than UbiSoft Entertainment.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UbiSoft Entertainment	$2.04 billion	0.31	-$170.71 million	N/A	N/A
Playtika	$2.55 billion	0.51	$162.20 million	$0.24	14.38

Playtika has higher revenue and earnings than UbiSoft Entertainment.

Volatility & Risk

UbiSoft Entertainment has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Summary

Playtika beats UbiSoft Entertainment on 10 of the 13 factors compared between the two stocks.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.

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.