Light & Wonder (NASDAQ:LNW) vs. PLAYSTUDIOS (NASDAQ:MYPS) Head to Head Analysis

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Light & Wonder and PLAYSTUDIOS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Light & Wonder	1	4	5	0	2.40
PLAYSTUDIOS	2	1	2	0	2.00

Light & Wonder currently has a consensus price target of $105.00, indicating a potential upside of 15.21%. PLAYSTUDIOS has a consensus price target of $2.00, indicating a potential upside of 210.22%. Given PLAYSTUDIOS’s higher probable upside, analysts plainly believe PLAYSTUDIOS is more favorable than Light & Wonder.

Volatility & Risk

Light & Wonder has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Light & Wonder and PLAYSTUDIOS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Light & Wonder	$3.22 billion	2.31	$336.00 million	$4.59	19.86
PLAYSTUDIOS	$289.43 million	0.28	-$28.69 million	($0.29)	-2.22

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

Insider and Institutional Ownership

88.1% of Light & Wonder shares are owned by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are owned by institutional investors. 2.2% of Light & Wonder shares are owned by insiders. Comparatively, 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.

Profitability

This table compares Light & Wonder and PLAYSTUDIOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Light & Wonder	10.89%	71.17%	8.73%
PLAYSTUDIOS	-15.10%	-8.71%	-6.77%

Summary

Light & Wonder beats PLAYSTUDIOS on 12 of the 14 factors compared between the two stocks.

About Light & Wonder

Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.

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.