Comparing Playtech (PYTCF) and Its Peers

Playtech (OTCMKTS:PYTCF) is one of 383 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its competitors? We will compare Playtech to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Dividends

Playtech pays an annual dividend of $0.23 per share and has a dividend yield of 4.4%. Playtech pays out 45.3% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.4% and pay out 45.3% of their earnings in the form of a dividend. Playtech is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Playtech and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtech	1	1	2	0	2.25
Playtech Competitors	3645	16753	24758	859	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 78.83%. Given Playtech’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Playtech has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Playtech and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Playtech	N/A	N/A	10.41
Playtech Competitors	$3.39 billion	$246.75 million	10.79

Playtech’s competitors have higher revenue and earnings than Playtech. Playtech is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

29.1% of Playtech shares are held by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 21.9% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Playtech and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Playtech	N/A	N/A	N/A
Playtech Competitors	-9.49%	-36.10%	1.88%

Summary

Playtech competitors beat Playtech on 9 of the 13 factors compared.

Playtech Company Profile

Playtech plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including live casino, sports, bingo, virtual sports, and poker. It also owns the intellectual property rights and licenses the software; provides digital marketing and advertising, consulting and online technical support, data mining processing, turnkey, live game, and video stream services; and operates betting shops. In addition, the company designs, develops, and sells software. The company was founded in 1999 and is based in Douglas, the Isle of Man.