PTC (PTC) vs. King Digital Entertainment (KING) Financial Analysis

PTC (NASDAQ: PTC) and King Digital Entertainment (NYSE:KING) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

98.0% of PTC shares are held by institutional investors. 1.2% of PTC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares PTC and King Digital Entertainment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PTC $1.16 billion 6.74 $6.23 million $0.25 269.92
King Digital Entertainment N/A N/A N/A $1.75 10.29

PTC has higher revenue and earnings than King Digital Entertainment. King Digital Entertainment is trading at a lower price-to-earnings ratio than PTC, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PTC and King Digital Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC 2.47% 9.29% 3.46%
King Digital Entertainment 19.58% 33.71% 24.95%

Analyst Ratings

This is a breakdown of current ratings for PTC and King Digital Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC 0 5 12 0 2.71
King Digital Entertainment 0 0 0 0 N/A

PTC currently has a consensus price target of $70.81, suggesting a potential upside of 4.94%. Given PTC’s higher probable upside, analysts plainly believe PTC is more favorable than King Digital Entertainment.

Summary

PTC beats King Digital Entertainment on 6 of the 10 factors compared between the two stocks.

PTC Company Profile

PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.

King Digital Entertainment Company Profile

King Digital Entertainment plc is an interactive entertainment company for the mobile world. The Company has four franchises: Candy Crush, Farm Heroes, Bubble Witch and Pet Rescue. The Company develops and publishes games that can be played on its king.com and royalgames.com Websites, Facebook and, mobile platforms, such as iOS and Android. The Company is involved in developing and monetizing digital games on multiple platforms. The Company’s games include Candy Crush Saga, Candy Crush Soda Saga, Farm Heroes Saga, Pet Rescue Saga and Bubble Witch 2 Saga. As of December 31, 2014, the Company had 533 million monthly active users (MAUs), 149 million daily active users (DAUs), 356 million monthly unique users (MUUs) and 8,344 million monthly unique payers (MUPs).

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