Skillz (NYSE:FIRY – Get Free Report) and Playtika (NASDAQ:PLTK – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for Skillz and Playtika, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skillz | 1 | 0 | 1 | 0 | 2.00 |
| Playtika | 1 | 3 | 2 | 0 | 2.17 |
Playtika has a consensus target price of $3.75, indicating a potential upside of 61.64%. Given Playtika’s stronger consensus rating and higher possible upside, analysts clearly believe Playtika is more favorable than Skillz.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skillz | $104.50 million | 2.01 | -$70.41 million | ($4.42) | -2.86 |
| Playtika | $2.76 billion | 0.32 | -$206.40 million | ($0.73) | -3.18 |
Skillz has higher earnings, but lower revenue than Playtika. Playtika is trading at a lower price-to-earnings ratio than Skillz, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
19.4% of Skillz shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 59.4% of Skillz shares are held by insiders. Comparatively, 5.7% of Playtika shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Skillz and Playtika’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skillz | -60.23% | -66.50% | -24.36% |
| Playtika | -9.89% | -65.82% | 6.17% |
Risk and Volatility
Skillz has a beta of 4.59, indicating that its share price is 359% more volatile than the S&P 500. Comparatively, Playtika has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Summary
Playtika beats Skillz on 8 of the 14 factors compared between the two stocks.
About Skillz
Skillz Inc. operates a mobile games platform that connects players in fair, fun, and meaningful competition. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users worldwide. It also hosts casual esports tournaments to a range of mobile players. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is headquartered in San Francisco, California.
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.
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