Analyzing Playags (AGS) and Summer Infant (SUMR)

Playags (NYSE: AGS) and Summer Infant (NASDAQ:SUMR) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

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This table compares Playags and Summer Infant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Playags N/A N/A N/A
Summer Infant -1.18% 8.20% 1.23%

Institutional and Insider Ownership

51.6% of Summer Infant shares are owned by institutional investors. 3.3% of Summer Infant shares are owned 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.

Earnings & Valuation

This table compares Playags and Summer Infant’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Playags $211.96 million 3.65 -$45.10 million ($1.94) -11.34
Summer Infant $189.87 million 0.11 -$2.24 million $0.07 16.57

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Playags and Summer Infant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Playags 0 1 4 0 2.80
Summer Infant 0 0 3 0 3.00

Playags presently has a consensus price target of $24.25, indicating a potential upside of 10.28%. Summer Infant has a consensus price target of $2.75, indicating a potential upside of 137.07%. Given Summer Infant’s stronger consensus rating and higher possible upside, analysts clearly believe Summer Infant is more favorable than Playags.

Summary

Summer Infant beats Playags on 9 of the 13 factors compared between the two stocks.

About Playags

PlayAGS, Inc. is a designer and supplier of EGMs and other products and services for the gaming industry. The Company is focused on supplying electronic gaming machines (EGMs), including slot machines, video bingo machines, and other electronic gaming devices, to the Native American gaming market. Its product line-up to include Class III EGMs for commercial and Native American casinos permitted to operate Class III EGMs, table game products and interactive products. The Company’s EGM segment delivers on several EGM cabinets, including ICON, Orion, and Big Red/Colossal Diamonds. It has also developed a new Latin-style bingo cabinet called ALORA, which is used in select international markets, including the Philippines and Brazil.

About Summer Infant

Summer Infant, Inc. is an infant and juvenile products company. The Company is engaged in the juvenile industry, providing mothers and caregivers a range of products to care for babies and toddlers. As of December 31, 2016, it marketed over 1,100 products in several product categories, including monitoring, safety, nursery, baby gear and feeding products. It markets its products, under its Summer Infant, SwaddleMe and Born Free brand names. Its anchor products in its product categories include monitoring, such as wireless fidelity (Wi-Fi)/Internet, video, audio and prenatal; safety, including gates, bath, potties, boosters and positioners; nursery, such as swaddle, travel accessories, safe sleep, soothers and sleep aides; baby gear, including strollers, bassinets, high chairs and playards, and feeding products, such as bottles, drinking cups, bibs and placemats, electronics and pacifiers. It sells its products across the globe to national retailers, as well as independent retailers.

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