Financial Survey: Playtika (NASDAQ:PLTK) & PENN Entertainment (NASDAQ:PENN)

PENN Entertainment (NASDAQ:PENN) and Playtika (NASDAQ:PLTK) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Volatility and Risk

PENN Entertainment has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Playtika has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PENN Entertainment	-1.12%	-4.36%	-0.85%
Playtika	3.23%	-83.90%	2.59%

Insider & Institutional Ownership

91.7% of PENN Entertainment shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 2.7% of PENN Entertainment shares are held by insiders. Comparatively, 5.1% of Playtika shares are held by 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PENN Entertainment	$6.58 billion	0.38	-$311.50 million	($0.56)	-30.21
Playtika	$2.67 billion	0.50	$162.20 million	$0.24	14.71

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PENN Entertainment and Playtika, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PENN Entertainment	2	6	10	0	2.44
Playtika	1	6	3	0	2.20

PENN Entertainment presently has a consensus price target of $22.80, suggesting a potential upside of 34.75%. Playtika has a consensus price target of $6.66, suggesting a potential upside of 88.56%. Given Playtika’s higher possible upside, analysts plainly believe Playtika is more favorable than PENN Entertainment.

Summary

Playtika beats PENN Entertainment on 8 of the 14 factors compared between the two stocks.

About PENN Entertainment

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

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.