Comparing Playtika (NASDAQ:PLTK) and Roblox (NYSE:RBLX)

Roblox (NYSE:RBLX) and Playtika (NASDAQ:PLTK) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roblox	-20.69%	-277.69%	-11.74%
Playtika	-10.54%	-67.46%	4.75%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	1	11	17	1	2.60
Playtika	1	4	2	0	2.14

Roblox currently has a consensus price target of $85.85, suggesting a potential upside of 80.48%. Playtika has a consensus price target of $4.00, suggesting a potential upside of 11.89%. Given Roblox’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Roblox is more favorable than Playtika.

Insider and Institutional Ownership

94.5% of Roblox shares are owned by institutional investors. Comparatively, 11.9% of Playtika shares are owned by institutional investors. 10.1% of Roblox shares are owned by insiders. Comparatively, 5.7% of Playtika shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Roblox and Playtika”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$4.89 billion	6.53	-$1.07 billion	($1.58)	-30.11
Playtika	$2.76 billion	0.49	-$206.40 million	($0.77)	-4.64

Playtika has lower revenue, but higher earnings than Roblox. Roblox is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Roblox has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Playtika has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Summary

Roblox beats Playtika on 9 of the 15 factors compared between the two stocks.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.

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.