Playtech (PYTCF) vs. The Competition Financial Comparison

Playtech (OTCMKTS:PYTCF) is one of 385 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its peers? We will compare Playtech to similar businesses based on the strength of its risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Playtech	N/A	N/A	10.41
Playtech Competitors	$3.33 billion	$245.62 million	10.81

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

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	-9.44%	-36.77%	1.90%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Playtech and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtech	1	1	2	0	2.25
Playtech Competitors	3666	16763	24765	859	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 79.34%. Given Playtech’s peers stronger consensus rating and higher probable upside, analysts clearly believe Playtech has less favorable growth aspects than its peers.

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 3.4% 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.

Insider and Institutional Ownership

29.1% of Playtech shares are held by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 21.9% of shares of all “Hotels, Restaurants & Leisure” companies 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.

Summary

Playtech peers beat Playtech on 9 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.