Financial Comparison: Take-Two Interactive Software (NASDAQ:TTWO) and PLAYSTUDIOS (NASDAQ:MYPS)

by · The Markets Daily

Take-Two Interactive Software (NASDAQ:TTWOGet Free Report) and PLAYSTUDIOS (NASDAQ:MYPSGet Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Profitability

This table compares Take-Two Interactive Software and PLAYSTUDIOS’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Take-Two Interactive Software-60.45%17.73%5.71%
PLAYSTUDIOS-12.18%-10.75%-8.43%

Risk and Volatility

Take-Two Interactive Software has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Take-Two Interactive Software and PLAYSTUDIOS, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Take-Two Interactive Software111612.89
PLAYSTUDIOS12102.00

Take-Two Interactive Software presently has a consensus target price of $284.31, suggesting a potential upside of 44.55%. PLAYSTUDIOS has a consensus target price of $1.25, suggesting a potential upside of 173.82%. Given PLAYSTUDIOS’s higher possible upside, analysts clearly believe PLAYSTUDIOS is more favorable than Take-Two Interactive Software.

Valuation & Earnings

This table compares Take-Two Interactive Software and PLAYSTUDIOS”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Take-Two Interactive Software$5.63 billion6.47-$4.48 billion($22.38)-8.79
PLAYSTUDIOS$235.10 million0.25-$28.64 million($0.22)-2.08

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

Institutional & Insider Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are owned by institutional investors. 1.3% of Take-Two Interactive Software shares are owned by insiders. Comparatively, 14.7% of PLAYSTUDIOS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Take-Two Interactive Software beats PLAYSTUDIOS on 9 of the 15 factors compared between the two stocks.

About Take-Two Interactive Software

(Get Free Report)

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.

About PLAYSTUDIOS

(Get Free Report)

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.