Financial Analysis: Roblox (NYSE:RBLX) & Playtika (NASDAQ:PLTK)

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

Institutional & Insider Ownership

11.9% of Playtika shares are owned by institutional investors. Comparatively, 94.5% of Roblox shares are owned by institutional investors. 5.7% of Playtika shares are owned by company insiders. Comparatively, 10.1% of Roblox shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Playtika and Roblox, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtika	1	4	2	0	2.14
Roblox	1	11	17	1	2.60

Playtika presently has a consensus price target of $4.00, suggesting a potential upside of 11.89%. Roblox has a consensus price target of $85.85, suggesting a potential upside of 80.48%. Given Roblox’s stronger consensus rating and higher possible upside, analysts clearly believe Roblox is more favorable than Playtika.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Playtika	$2.76 billion	0.49	-$206.40 million	($0.77)	-4.64
Roblox	$4.89 billion	6.53	-$1.07 billion	($1.58)	-30.11

Playtika has higher earnings, but lower revenue than Roblox. Roblox 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 Roblox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Playtika	-10.54%	-67.46%	4.75%
Roblox	-20.69%	-277.69%	-11.74%

Risk and Volatility

Playtika has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Roblox has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Summary

Roblox beats Playtika on 9 of the 15 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 Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.