Analyzing Gravity (NASDAQ:GRVY) and Playtika (NASDAQ:PLTK)

Gravity (NASDAQ:GRVY) and Playtika (NASDAQ:PLTK) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Gravity and Playtika’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gravity	14.98%	34.76%	28.79%
Playtika	8.52%	-144.73%	6.99%

Analyst Ratings

This is a breakdown of current recommendations for Gravity and Playtika, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gravity	0	0	0	0	0.00
Playtika	0	5	3	0	2.38

Playtika has a consensus target price of $9.25, suggesting a potential upside of 29.55%. Given Playtika’s stronger consensus rating and higher probable upside, analysts clearly believe Playtika is more favorable than Gravity.

Volatility and Risk

Gravity has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Playtika has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

9.9% of Gravity shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 4.8% of Playtika shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Gravity and Playtika”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gravity	$555.74 million	0.76	$105.61 million	$8.98	6.80
Playtika	$2.57 billion	1.04	$235.00 million	$0.58	12.31

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

Summary

Playtika beats Gravity on 9 of the 14 factors compared between the two stocks.

About Gravity

Gravity Co., Ltd. develops and publishes online and mobile games worldwide. It offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Landverse. Its mobile games portfolio includes Ragnarok M; Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; Ragnarok Arena; WITH ISLAND; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; Generation Zombie; Ragnarok Idle Adventure; Ragnarok 20 Heroes; White Chord; WITH: Whale In The High; Ragnarok Lost Memories; and Paladog Tactics. It also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; Pigromance for Steam, Stove, Nintendo Switch, Xbox One, Xbox Series X|S; ALTF4 11 for Steam and Stove; Wetory for Steam, Stove, Nintedo Switch; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin, and Kongsuni; and markets dolls, stationery, food, and other character based merchandises, as well as game manuals, monthly magazines, and other publications; PC games, including Puzzle Platformer, ALTF42, Ragnarok ZERO, KAMiBAKO-Mythology of Cube, Psychodemic, and FINAL KNIGHT; social network games and mobile games, such as Ragnarok V: Returns, Ragnarok: The Lost Memories and Ragnrok Begins in-house; and web-browser-based games, such as Ragnarok Prequel and Ragnarok Prequel II. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.

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.