Financial Survey: Capcom (OTCMKTS:CCOEY) vs. PLAYSTUDIOS (NASDAQ:MYPS)

Capcom (OTCMKTS:CCOEY) and PLAYSTUDIOS (NASDAQ:MYPS) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capcom	32.82%	26.93%	21.51%
PLAYSTUDIOS	-12.18%	-10.75%	-8.43%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capcom	$1.11 billion	10.27	$319.78 million	$0.51	21.04
PLAYSTUDIOS	$235.10 million	0.24	-$28.64 million	($0.22)	-1.97

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

Risk & Volatility

Capcom has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

37.5% of PLAYSTUDIOS shares are owned by institutional investors. 14.7% of PLAYSTUDIOS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Capcom and PLAYSTUDIOS, as provided by MarketBeat.

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

PLAYSTUDIOS has a consensus price target of $1.25, suggesting a potential upside of 189.15%. Given PLAYSTUDIOS’s higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than Capcom.

Summary

Capcom beats PLAYSTUDIOS on 8 of the 13 factors compared between the two stocks.

About Capcom

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.

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.