GREE (OTCMKTS:GREZF) versus PENN Entertainment (NASDAQ:PENN) Critical Survey

GREE (OTCMKTS:GREZF) and PENN Entertainment (NASDAQ:PENN) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Earnings and Valuation

This table compares GREE and PENN Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GREE	N/A	N/A	N/A	N/A	N/A
PENN Entertainment	$6.58 billion	0.42	-$311.50 million	($0.56)	-34.11

GREE has higher earnings, but lower revenue than PENN Entertainment.

Risk and Volatility

GREE has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Profitability

This table compares GREE and PENN Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GREE	N/A	N/A	N/A
PENN Entertainment	-1.12%	-4.36%	-0.85%

Institutional and Insider Ownership

91.7% of PENN Entertainment shares are held by institutional investors. 2.7% of PENN Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for GREE and PENN Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GREE	0	0	0	0	0.00
PENN Entertainment	1	6	11	0	2.56

PENN Entertainment has a consensus target price of $23.25, indicating a potential upside of 21.73%. Given PENN Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe PENN Entertainment is more favorable than GREE.

Summary

PENN Entertainment beats GREE on 7 of the 10 factors compared between the two stocks.

About GREE

GREE, Inc. operates Internet entertainment, investment, and incubation business in Japan and internationally. It develops and operates various smartphone games under the GREE, WFS, Pokelabo, and GREE Entertainment brands; and engages with anime production committees to develop original contents domestically and internationally. The company also offers REALITY, a metaverse for smartphone for individuals to turn themselves into digital avatar and stream various contents, and VTuber business that allows streamers to host live digital performances, play games, and chat services; and REALITY XR cloud, a cloud solution platform that enables corporate customers to build their own metaverse using 3DCG and XR technologies, as well as develop and publish blockchain games. In addition, it provides Marketing DX a service designed to accompany the evolution of client companies and business growth; Operation DX that manages customer relationships, quality control, and risks associated with business development; and DDM, an analytics platform to restructures disorganized internal data by incorporating real-time visualization. Further, the company offers aumo that provides travel and lifestyle information content including latest information on restaurants, shopping, and travel, as well as user reviews on various stores and other facilities; and support for creation of sales promotion pages, access analysis, and post and dissemination of store and facility information. Additionally, it provides jobda for job-related information; LIMIA, an on-;one magazines that features home and living lifestyle content; MINE, an on-line video magazine that features women's fashion, beauty and lifestyle content; and ARINE, a on-line magazine for young women. The company also offers DADAN to deliver the entertainment of manga; STUDIO DADAN to plan and produce manga content; and invests in internet and IT fields. GREE, Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan.

About PENN Entertainment

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.