Gaia (NASDAQ:GAIA – Get Free Report) and PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Institutional and Insider Ownership
40.5% of Gaia shares are held by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are held by institutional investors. 26.0% of Gaia shares are held by insiders. Comparatively, 14.9% of PLAYSTUDIOS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Gaia and PLAYSTUDIOS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gaia | -6.08% | -5.82% | -3.85% |
| PLAYSTUDIOS | -20.65% | -19.61% | -15.33% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gaia | $98.95 million | 0.36 | -$4.49 million | ($0.24) | -5.79 |
| PLAYSTUDIOS | $235.10 million | 2.41 | -$28.64 million | ($0.36) | -13.11 |
Gaia has higher earnings, but lower revenue than PLAYSTUDIOS. PLAYSTUDIOS is trading at a lower price-to-earnings ratio than Gaia, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Gaia has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, PLAYSTUDIOS has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Gaia and PLAYSTUDIOS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gaia | 1 | 0 | 0 | 0 | 1.00 |
| PLAYSTUDIOS | 1 | 2 | 1 | 0 | 2.00 |
PLAYSTUDIOS has a consensus price target of $12.50, indicating a potential upside of 164.83%. Given PLAYSTUDIOS’s stronger consensus rating and higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than Gaia.
Summary
Gaia beats PLAYSTUDIOS on 9 of the 14 factors compared between the two stocks.
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.
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.
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