Critical Survey: Playtech (PYTCF) versus Its Rivals

Playtech (OTCMKTS:PYTCF) is one of 383 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare Playtech to related businesses based on the strength of its risk, dividends, analyst recommendations, earnings, valuation, institutional ownership and profitability.

Institutional & Insider Ownership

29.1% of Playtech shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Playtech and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Playtech	N/A	N/A	N/A
Playtech Competitors	-9.51%	-36.10%	1.95%

Valuation and Earnings

This table compares Playtech and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Playtech	N/A	N/A	10.41
Playtech Competitors	$3.39 billion	$246.75 million	3.46

Playtech’s peers have higher revenue and earnings than Playtech. Playtech is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Playtech pays an annual dividend of $0.23 per share and has a dividend yield of 4.4%. Playtech pays out 45.3% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.5% and pay out 45.4% of their earnings in the form of a dividend. Playtech is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Playtech and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtech	1	1	2	0	2.25
Playtech Competitors	3628	16723	24718	855	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 80.76%. Given Playtech’s peers stronger consensus rating and higher probable upside, analysts plainly believe Playtech has less favorable growth aspects than its peers.

Summary

Playtech peers beat Playtech on 8 of the 13 factors compared.

Playtech Company Profile

Playtech plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including live casino, sports, bingo, virtual sports, and poker. It also owns the intellectual property rights and licenses the software; provides digital marketing and advertising, consulting and online technical support, data mining processing, turnkey, live game, and video stream services; and operates betting shops. In addition, the company designs, develops, and sells software. The company was founded in 1999 and is based in Douglas, the Isle of Man.