Playtika (NASDAQ:PLTK – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Institutional and Insider Ownership
11.9% of Playtika shares are held by institutional investors. Comparatively, 37.7% of DraftKings shares are held by institutional investors. 5.1% of Playtika shares are held by insiders. Comparatively, 51.2% of DraftKings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Playtika has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Playtika | 1 | 4 | 1 | 0 | 2.00 |
| DraftKings | 2 | 5 | 25 | 0 | 2.72 |
Playtika presently has a consensus target price of $4.38, suggesting a potential upside of 47.80%. DraftKings has a consensus target price of $37.09, suggesting a potential upside of 74.36%. Given DraftKings’ stronger consensus rating and higher probable upside, analysts clearly believe DraftKings is more favorable than Playtika.
Valuation & Earnings
This table compares Playtika and DraftKings”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Playtika | $2.76 billion | 0.41 | -$206.40 million | ($0.54) | -5.48 |
| DraftKings | $6.05 billion | 1.73 | $3.71 million | ($0.04) | -531.75 |
DraftKings has higher revenue and earnings than Playtika. DraftKings is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Playtika and DraftKings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Playtika | -7.49% | -114.29% | 5.40% |
| DraftKings | 0.06% | 5.36% | 0.96% |
Summary
DraftKings beats Playtika on 12 of the 14 factors compared between the two stocks.
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.
About DraftKings
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. In addition, it offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. The company is headquartered in Boston, Massachusetts.
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