Playags (AGS) and Scientific Games (SGMS) Head-To-Head Analysis

Scientific Games (NASDAQ: SGMS) and Playags (NYSE:AGS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Valuation and Earnings

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This table compares Scientific Games and Playags’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scientific Games $3.08 billion 1.21 -$242.30 million ($2.23) -18.65
Playags $211.96 million 3.65 -$45.10 million ($1.94) -11.34

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Scientific Games and Playags, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scientific Games 0 1 4 0 2.80
Playags 0 1 4 0 2.80

Scientific Games currently has a consensus target price of $55.00, indicating a potential upside of 32.21%. Playags has a consensus target price of $24.25, indicating a potential upside of 10.28%. Given Scientific Games’ higher probable upside, analysts clearly believe Scientific Games is more favorable than Playags.

Profitability

This table compares Scientific Games and Playags’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scientific Games -7.86% N/A -2.75%
Playags N/A N/A N/A

Institutional and Insider Ownership

65.9% of Scientific Games shares are held by institutional investors. 40.6% of Scientific Games shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Playags beats Scientific Games on 6 of the 10 factors compared between the two stocks.

Scientific Games Company Profile

Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, and interactive gaming industries worldwide. The company's Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals (VLTs), conversion game kits, and spare parts; slot, casino, and table-management systems; table products, including shufflers; and perpetual licenses to proprietary table games. It also leases VLTs and electronic table games, game themes, or other licensing arrangements; and provides installation and support services for casino management systems, such as ongoing hardware maintenance and software upgrade services. The company's Lottery segment designs, prints, and sells instant lottery games, as well as offers instant game-related services comprising game design, sales and marketing support, and inventory management; and provides lottery systems, including hardware, software, and instant game validation systems. It is also involved in supplying player loyalty programs, as well as providing merchandising services and interactive marketing campaigns; and sublicensing brands for lottery products, as well as providing lottery-related promotional products. In addition, this segment provides software, hardware, and related services for lottery operations, including draw systems, instant ticket validation systems, and sports wagering and keno systems; and lottery systems software maintenance and support services. The company's Interactive segment operates social casino-style, slot-based, and bingo-based games through Facebook, iOS, Android, and various other desktop and mobile platforms; and provides content through remote game server technology, to licensed online casino operators on desktop and mobile platforms, as well as play-for-fun and play-for-free white-label gaming for land-based casinos. Scientific Games Corporation was founded in 1984 and is headquartered in Las Vegas, Nevada.

Playags Company Profile

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.

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