Playtika (NASDAQ:PLTK – Get Free Report) and Manchester United (NYSE:MANU – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Playtika and Manchester United, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Playtika | 1 | 4 | 2 | 0 | 2.14 |
| Manchester United | 1 | 0 | 0 | 0 | 1.00 |
Playtika presently has a consensus target price of $4.11, suggesting a potential upside of 73.30%. Given Playtika’s stronger consensus rating and higher possible upside, equities analysts plainly believe Playtika is more favorable than Manchester United.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Playtika | $2.83 billion | 0.32 | -$206.40 million | ($0.73) | -3.25 |
| Manchester United | $684.33 million | 5.75 | -$42.74 million | ($0.14) | -163.00 |
Manchester United has lower revenue, but higher earnings than Playtika. Manchester United is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
11.9% of Playtika shares are owned by institutional investors. Comparatively, 23.3% of Manchester United shares are owned by institutional investors. 5.7% of Playtika shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Playtika pays an annual dividend of $0.40 per share and has a dividend yield of 16.9%. Manchester United pays an annual dividend of $0.09 per share and has a dividend yield of 0.4%. Playtika pays out -54.8% of its earnings in the form of a dividend. Manchester United pays out -64.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
Playtika has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Manchester United has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
Profitability
This table compares Playtika and Manchester United’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Playtika | -9.89% | -70.16% | 6.00% |
| Manchester United | -2.67% | 0.64% | 0.07% |
Summary
Playtika beats Manchester United on 9 of the 16 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 Manchester United
Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.
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