Playtika (NASDAQ:PLTK) versus Manchester United (NYSE:MANU) Financial Comparison

Manchester United (NYSE:MANU) and Playtika (NASDAQ:PLTK) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares Manchester United and Playtika”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manchester United	$684.33 million	5.75	-$42.74 million	($0.14)	-163.00
Playtika	$2.83 billion	0.32	-$206.40 million	($0.73)	-3.25

Manchester United has higher earnings, but lower revenue than Playtika. Manchester United is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Manchester United and Playtika’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manchester United	-2.67%	0.64%	0.07%
Playtika	-9.89%	-70.16%	6.00%

Institutional and Insider Ownership

23.3% of Manchester United shares are owned by institutional investors. Comparatively, 11.9% of Playtika shares are owned by institutional investors. 5.7% of Playtika shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Manchester United has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Playtika has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Dividends

Manchester United pays an annual dividend of $0.09 per share and has a dividend yield of 0.4%. Playtika pays an annual dividend of $0.40 per share and has a dividend yield of 16.9%. Manchester United pays out -64.3% of its earnings in the form of a dividend. Playtika pays out -54.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Manchester United and Playtika, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manchester United	1	0	0	0	1.00
Playtika	1	4	2	0	2.14

Playtika has a consensus price target of $4.11, indicating a potential upside of 73.30%. Given Playtika’s stronger consensus rating and higher probable upside, analysts plainly believe Playtika is more favorable than Manchester United.

Summary

Playtika beats Manchester United on 9 of the 16 factors compared between the two stocks.

About Manchester United

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.

About Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.