Critical Contrast: PLAYSTUDIOS (NASDAQ:MYPS) and iHuman (NYSE:IH)

iHuman (NYSE:IH) and PLAYSTUDIOS (NASDAQ:MYPS) are both small-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility and Risk

iHuman has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares iHuman and PLAYSTUDIOS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iHuman	$744.09 million	0.08	$13.64 million	$0.06	19.33
PLAYSTUDIOS	$226.45 million	0.21	-$28.64 million	($3.60)	-1.10

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for iHuman and PLAYSTUDIOS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iHuman	1	0	0	0	1.00
PLAYSTUDIOS	1	2	1	0	2.00

PLAYSTUDIOS has a consensus target price of $12.50, indicating a potential upside of 215.66%. Given PLAYSTUDIOS’s stronger consensus rating and higher probable upside, analysts clearly believe PLAYSTUDIOS is more favorable than iHuman.

Institutional and Insider Ownership

4.9% of iHuman shares are held by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are held by institutional investors. 63.6% of iHuman shares are held by company insiders. Comparatively, 14.9% of PLAYSTUDIOS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares iHuman and PLAYSTUDIOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iHuman	3.06%	2.44%	1.73%
PLAYSTUDIOS	-20.65%	-19.61%	-15.33%

Summary

iHuman beats PLAYSTUDIOS on 8 of the 14 factors compared between the two stocks.

About iHuman

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People’s Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, iHuman Writing, iHuman Fantastic Friends, and iHuman Readers; bekids Coding, bekids Coloring, bekids Reading, bekids Puzzle, bekids Academy, and Gogo Town; and Aha World, an open-ended interactive app that nurtures a desire for discovery. It provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children’s abilities in speaking, critical thinking, independent reading, and creativity. iHuman Inc. was founded in 1996 and is based in Beijing, the People’s Republic of China.

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.