Analyzing Roku (NASDAQ:ROKU) and PLAYSTUDIOS (NASDAQ:MYPS)

PLAYSTUDIOS (NASDAQ:MYPS) and Roku (NASDAQ:ROKU) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for PLAYSTUDIOS and Roku, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLAYSTUDIOS	1	2	1	0	2.00
Roku	0	19	7	1	2.33

PLAYSTUDIOS presently has a consensus price target of $12.50, suggesting a potential upside of 167.09%. Roku has a consensus price target of $156.17, suggesting a potential downside of 0.31%. Given PLAYSTUDIOS’s higher possible upside, research analysts plainly believe PLAYSTUDIOS is more favorable than Roku.

Earnings and Valuation

This table compares PLAYSTUDIOS and Roku”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLAYSTUDIOS	$226.45 million	0.25	-$43.24 million	($3.60)	-1.30
Roku	N/A	N/A	N/A	$2.34	66.95

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

Institutional and Insider Ownership

37.5% of PLAYSTUDIOS shares are held by institutional investors. Comparatively, 86.3% of Roku shares are held by institutional investors. 14.9% of PLAYSTUDIOS shares are held by company insiders. Comparatively, 13.4% of Roku shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares PLAYSTUDIOS and Roku’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PLAYSTUDIOS	N/A	N/A	N/A
Roku	N/A	N/A	N/A

Summary

Roku beats PLAYSTUDIOS on 5 of the 8 factors compared between the two stocks.

About PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.

About Roku

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.