King Digital Entertainment (NYSE: KING) and Square (NYSE:SQ) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Earnings & Valuation
This table compares King Digital Entertainment and Square’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|King Digital Entertainment||N/A||N/A||N/A||$1.75||10.29|
|Square||$2.21 billion||9.40||-$62.81 million||($0.16)||-328.06|
This table compares King Digital Entertainment and Square’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|King Digital Entertainment||19.58%||33.71%||24.95%|
This is a summary of current ratings for King Digital Entertainment and Square, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|King Digital Entertainment||0||0||0||0||N/A|
Square has a consensus price target of $41.92, suggesting a potential downside of 20.13%. Given Square’s higher possible upside, analysts plainly believe Square is more favorable than King Digital Entertainment.
Insider & Institutional Ownership
52.2% of Square shares are owned by institutional investors. 32.7% of Square shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Square beats King Digital Entertainment on 5 of the 9 factors compared between the two stocks.
About King Digital Entertainment
King Digital Entertainment plc is an interactive entertainment company for the mobile world. The Company has four franchises: Candy Crush, Farm Heroes, Bubble Witch and Pet Rescue. The Company develops and publishes games that can be played on its king.com and royalgames.com Websites, Facebook and, mobile platforms, such as iOS and Android. The Company is involved in developing and monetizing digital games on multiple platforms. The Company’s games include Candy Crush Saga, Candy Crush Soda Saga, Farm Heroes Saga, Pet Rescue Saga and Bubble Witch 2 Saga. As of December 31, 2014, the Company had 533 million monthly active users (MAUs), 149 million daily active users (DAUs), 356 million monthly unique users (MUUs) and 8,344 million monthly unique payers (MUPs).
Square, Inc. (Square) is a commerce ecosystem. The Company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. Once a seller downloads the Square Point of Sale mobile application, they can take their first payment. With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website. Once on its system, sellers gain access to technology and features, such as reporting and analytics, next-day settlements, digital receipts, payment dispute management and chargeback protection, and Payment Card Industry (PCI) compliance. On the consumer (buyer) side, Square Cash offers individuals access to a way to send and receive money.
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