Analyzing SciPlay (NASDAQ:SCPL) and Tucows (NASDAQ:TCX)

SciPlay (NASDAQ:SCPL) and Tucows (NASDAQ:TCX) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Risk and Volatility

SciPlay has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Tucows has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for SciPlay and Tucows, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SciPlay 1 8 3 0 2.17
Tucows 0 0 1 0 3.00

SciPlay currently has a consensus target price of $19.46, suggesting a potential downside of 4.76%. Tucows has a consensus target price of $70.00, suggesting a potential downside of 7.44%. Given SciPlay’s higher probable upside, equities analysts clearly believe SciPlay is more favorable than Tucows.

Institutional & Insider Ownership

17.3% of SciPlay shares are owned by institutional investors. Comparatively, 61.3% of Tucows shares are owned by institutional investors. 2.7% of SciPlay shares are owned by company insiders. Comparatively, 10.9% of Tucows shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares SciPlay and Tucows’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SciPlay $582.20 million 4.49 $20.90 million $0.86 23.76
Tucows $311.20 million 2.60 $5.78 million N/A N/A

SciPlay has higher revenue and earnings than Tucows.

Profitability

This table compares SciPlay and Tucows’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SciPlay 3.50% 4.74% 3.63%
Tucows 2.32% 6.37% 1.46%

Summary

SciPlay beats Tucows on 7 of the 13 factors compared between the two stocks.

About SciPlay

SciPlay Corp. engages in the development and publishing of digital games on mobile and web platforms. It offers social casino games that include Jackpot Party Casino, Gold Fish Casino, Hot Shot Casino and Quick Hit Slots, and casual games, which include Monopoly Slots, Bingo Showdown, and 88 Fortunes Slots. The company was founded on November 30, 2018 and is headquartered in Las Vegas, NV.

About Tucows

Tucows, Inc. is an Internet services company. The firm engages in the provision of domain names, email and other internet services. It operates through the following segments: The Mobile, The Fiber, and Domain Services. The Mobile segment will contain Mobile Services Enabler (“”MSE””) and professional services product offerings, as well as the retail sale of mobile phones and retail telephony services. The Fiber segment will contain the operating results of retail Internet access operations. The Domain Services segment includes wholesale and retail domain name registration services, value added services, and portfolio services derived through OpenSRS, eNom, Ascio, and Hover brands. The company was founded in November 1992 and is headquartered in Toronto, Canada.

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