Gravity (NASDAQ:GRVY – Get Free Report) and Skillz (NYSE:SKLZ – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Volatility & Risk
Gravity has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Skillz has a beta of 2.78, indicating that its stock price is 178% more volatile than the S&P 500.
Valuation & Earnings
This table compares Gravity and Skillz’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Gravity | $555.74 million | 0.99 | $105.61 million | $13.23 | 5.98 |
Skillz | $150.11 million | 0.92 | -$106.69 million | ($5.11) | -1.26 |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Gravity and Skillz, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Gravity | 0 | 0 | 0 | 0 | N/A |
Skillz | 0 | 3 | 2 | 0 | 2.40 |
Skillz has a consensus price target of $10.25, suggesting a potential upside of 59.04%. Given Skillz’s higher possible upside, analysts plainly believe Skillz is more favorable than Gravity.
Profitability
This table compares Gravity and Skillz’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Gravity | 16.96% | 46.65% | 36.71% |
Skillz | -78.69% | -48.43% | -26.29% |
Insider & Institutional Ownership
9.9% of Gravity shares are owned by institutional investors. Comparatively, 19.4% of Skillz shares are owned by institutional investors. 22.7% of Skillz shares are owned by company 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.
Summary
Gravity beats Skillz on 8 of the 13 factors compared between the two stocks.
About Gravity
Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and the United States. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.
About Skillz
Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.
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