PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) and SPS Commerce (NASDAQ:SPSC – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Profitability
This table compares PLAYSTUDIOS and SPS Commerce’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
PLAYSTUDIOS | -8.75% | -9.15% | -7.29% |
SPS Commerce | 12.08% | 12.27% | 10.10% |
Insider & Institutional Ownership
37.5% of PLAYSTUDIOS shares are owned by institutional investors. Comparatively, 99.0% of SPS Commerce shares are owned by institutional investors. 14.3% of PLAYSTUDIOS shares are owned by insiders. Comparatively, 1.0% of SPS Commerce shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
PLAYSTUDIOS | $310.89 million | 0.70 | -$19.39 million | ($0.19) | -9.19 |
SPS Commerce | $637.77 million | 8.85 | $77.05 million | $2.04 | 73.65 |
SPS Commerce has higher revenue and earnings than PLAYSTUDIOS. PLAYSTUDIOS is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
PLAYSTUDIOS has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for PLAYSTUDIOS and SPS Commerce, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
PLAYSTUDIOS | 1 | 3 | 2 | 0 | 2.17 |
SPS Commerce | 0 | 5 | 6 | 0 | 2.55 |
PLAYSTUDIOS presently has a consensus target price of $3.63, suggesting a potential upside of 107.62%. SPS Commerce has a consensus target price of $207.11, suggesting a potential upside of 37.85%. Given PLAYSTUDIOS’s higher possible upside, research analysts clearly believe PLAYSTUDIOS is more favorable than SPS Commerce.
Summary
SPS Commerce beats PLAYSTUDIOS on 12 of the 14 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 SPS Commerce
SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
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