PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) and Gaia (NASDAQ:GAIA – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Profitability
This table compares PLAYSTUDIOS and Gaia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PLAYSTUDIOS | -20.65% | -19.61% | -15.33% |
| Gaia | -6.08% | -5.82% | -3.85% |
Volatility and Risk
PLAYSTUDIOS has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Gaia has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PLAYSTUDIOS | 1 | 2 | 1 | 0 | 2.00 |
| Gaia | 1 | 0 | 0 | 0 | 1.00 |
PLAYSTUDIOS currently has a consensus price target of $1.25, suggesting a potential upside of 172.63%. Given PLAYSTUDIOS’s stronger consensus rating and higher probable upside, equities analysts clearly believe PLAYSTUDIOS is more favorable than Gaia.
Institutional & Insider Ownership
37.5% of PLAYSTUDIOS shares are held by institutional investors. Comparatively, 40.5% of Gaia shares are held by institutional investors. 14.9% of PLAYSTUDIOS shares are held by company insiders. Comparatively, 26.0% of Gaia shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares PLAYSTUDIOS and Gaia”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PLAYSTUDIOS | $235.10 million | 0.23 | -$28.64 million | ($0.36) | -1.27 |
| Gaia | $98.95 million | 0.36 | -$4.49 million | ($0.24) | -5.77 |
Gaia has lower revenue, but higher earnings than PLAYSTUDIOS. Gaia is trading at a lower price-to-earnings ratio than PLAYSTUDIOS, indicating that it is currently the more affordable of the two stocks.
Summary
Gaia beats PLAYSTUDIOS on 8 of the 13 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 Gaia
Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.
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