Motorsport Games (NASDAQ:MSGM) versus Playtika (NASDAQ:PLTK) Financial Analysis

Motorsport Games (NASDAQ:MSGM) and Playtika (NASDAQ:PLTK) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares Motorsport Games and Playtika’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	34.24%	86.01%	42.20%
Playtika	3.16%	-114.44%	3.23%

Risk & Volatility

Motorsport Games has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

1.7% of Motorsport Games shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 17.3% of Motorsport Games shares are held by company insiders. Comparatively, 5.1% of Playtika shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Motorsport Games and Playtika”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$8.69 million	1.71	-$2.75 million	$0.40	6.43
Playtika	$2.55 billion	0.63	$162.20 million	$0.24	17.67

Playtika has higher revenue and earnings than Motorsport Games. Motorsport Games is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Motorsport Games and Playtika, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	0	2.00
Playtika	0	6	3	0	2.33

Playtika has a consensus price target of $6.00, suggesting a potential upside of 41.51%. Given Playtika’s stronger consensus rating and higher possible upside, analysts clearly believe Playtika is more favorable than Motorsport Games.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.

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.