Financial Survey: DraftKings (NASDAQ:DKNG) and Playtika (NASDAQ:PLTK)
by Sarita Garza · The Markets DailyPlaytika (NASDAQ:PLTK – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) 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, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Insider & Institutional 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 company insiders. Comparatively, 51.2% of DraftKings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Playtika and DraftKings, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Playtika | 1 | 4 | 2 | 0 | 2.14 |
| DraftKings | 2 | 5 | 25 | 0 | 2.72 |
Playtika presently has a consensus price target of $4.68, indicating a potential upside of 65.91%. DraftKings has a consensus price target of $37.09, indicating a potential upside of 56.68%. Given Playtika’s higher probable upside, analysts clearly believe Playtika is more favorable than DraftKings.
Valuation and Earnings
This table compares Playtika and DraftKings”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Playtika | $2.76 billion | 0.39 | -$206.40 million | ($0.54) | -5.22 |
| DraftKings | $6.05 billion | 1.93 | $3.71 million | ($0.04) | -591.75 |
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% |
Volatility & Risk
Playtika has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Summary
DraftKings beats Playtika on 11 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.