Comparing Gaia (NASDAQ:GAIA) & PLAYSTUDIOS (NASDAQ:MYPS)

PLAYSTUDIOS (NASDAQ:MYPS) and Gaia (NASDAQ:GAIA) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PLAYSTUDIOS and Gaia, as provided by MarketBeat.com.

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

PLAYSTUDIOS currently has a consensus target price of $12.50, suggesting a potential upside of 152.53%. Given PLAYSTUDIOS’s stronger consensus rating and higher possible upside, analysts clearly believe PLAYSTUDIOS is more favorable than Gaia.

Insider & Institutional Ownership

37.5% of PLAYSTUDIOS shares are owned by institutional investors. Comparatively, 40.5% of Gaia shares are owned by institutional investors. 14.9% of PLAYSTUDIOS shares are owned by insiders. Comparatively, 26.0% of Gaia shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PLAYSTUDIOS	-20.65%	-19.61%	-15.33%
Gaia	-6.08%	-5.82%	-3.85%

Risk and Volatility

PLAYSTUDIOS has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Gaia has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLAYSTUDIOS	$235.10 million	0.25	-$28.64 million	($3.60)	-1.38
Gaia	$98.95 million	0.36	-$4.49 million	($0.24)	-5.79

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

Summary

Gaia beats PLAYSTUDIOS on 9 of the 14 factors compared between the two stocks.

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.

About Gaia

Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.