Analyzing Sigma Labs (SGLB) and PlayAGS (AGS)

Sigma Labs (NASDAQ:SGLB) and PlayAGS (NYSE:AGS) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Profitability

This table compares Sigma Labs and PlayAGS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sigma Labs -1,294.78% -168.04% -136.61%
PlayAGS -10.91% -40.01% -3.47%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sigma Labs and PlayAGS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sigma Labs 0 0 1 0 3.00
PlayAGS 0 0 7 0 3.00

PlayAGS has a consensus price target of $34.00, suggesting a potential upside of 40.50%. Given PlayAGS’s higher possible upside, analysts plainly believe PlayAGS is more favorable than Sigma Labs.

Earnings and Valuation

This table compares Sigma Labs and PlayAGS’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sigma Labs $640,000.00 22.56 -$4.57 million ($1.04) -1.68
PlayAGS $211.96 million 4.03 -$45.10 million ($1.94) -12.47

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

Institutional & Insider Ownership

3.3% of Sigma Labs shares are owned by institutional investors. 9.6% of Sigma Labs shares are owned by insiders. Comparatively, 1.3% of PlayAGS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

PlayAGS beats Sigma Labs on 6 of the 11 factors compared between the two stocks.

About Sigma Labs

Sigma Labs, Inc. develops and commercializes manufacturing and materials technologies. It offers PrintRite3D quality assurance software apps primarily for 3D printing and additive manufacturing industries. The company's products are used in advanced manufacturing technologies to assure part quality in real time as the part is being made and enhance process control practices. It also provides engineering consulting services for developing next-generation technologies in advanced manufacturing technologies. The company serves aerospace and defense manufacturing, energy and power generation, bio-medical manufacturing, automotive manufacturing, and firearms and recreational equipment industries. Sigma Labs, Inc. was founded in 2010 and is based in Santa Fe, New Mexico.

About PlayAGS

AGS is a global company focused on creating a diverse mix of entertaining gaming experiences for every kind of player. Their roots are firmly planted in the Class II Native American gaming market, but their customer-centric culture and growth have helped them branch out to become a leading all-inclusive commercial gaming supplier. Powered by high-performing Class II and Class III slot products, an expansive table products portfolio, highly rated social casino solutions for players and operators, and best-in-class service, they offer an unmatched value proposition for their casino partners.

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