Financial Review: Churchill Downs (NASDAQ:CHDN) and Playtika (NASDAQ:PLTK)
by Sarita Garza · The Markets DailyChurchill Downs (NASDAQ:CHDN – Get Free Report) and Playtika (NASDAQ:PLTK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Churchill Downs and Playtika, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Churchill Downs | 1 | 0 | 11 | 0 | 2.83 |
| Playtika | 1 | 4 | 1 | 0 | 2.00 |
Churchill Downs currently has a consensus price target of $139.00, suggesting a potential upside of 59.92%. Playtika has a consensus price target of $4.00, suggesting a potential upside of 29.45%. Given Churchill Downs’ stronger consensus rating and higher probable upside, analysts clearly believe Churchill Downs is more favorable than Playtika.
Earnings and Valuation
This table compares Churchill Downs and Playtika”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Churchill Downs | $2.93 billion | 2.07 | $383.00 million | $5.40 | 16.10 |
| Playtika | $2.76 billion | 0.43 | -$206.40 million | ($0.77) | -4.01 |
Churchill Downs has higher revenue and earnings than Playtika. Playtika is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Churchill Downs has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Playtika has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Institutional & Insider Ownership
82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 5.9% of Churchill Downs shares are held by company insiders. Comparatively, 5.7% of Playtika shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Churchill Downs and Playtika’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Churchill Downs | 13.21% | 43.50% | 6.10% |
| Playtika | -10.54% | -67.46% | 4.75% |
Summary
Churchill Downs beats Playtika on 13 of the 14 factors compared between the two stocks.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
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.