PlayAGS (NYSE: AGS) and Smiths Group (OTCMKTS:SMGZY) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Smiths Group pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. PlayAGS does not pay a dividend. Smiths Group pays out 29.3% of its earnings in the form of a dividend.
This table compares PlayAGS and Smiths Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares PlayAGS and Smiths Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PlayAGS||$211.96 million||3.81||-$45.10 million||($1.94)||-11.83|
|Smiths Group||$4.16 billion||2.22||$712.11 million||$1.23||18.93|
Smiths Group has higher revenue and earnings than PlayAGS. PlayAGS is trading at a lower price-to-earnings ratio than Smiths Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
97.6% of PlayAGS shares are owned by institutional investors. Comparatively, 1.1% of Smiths Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for PlayAGS and Smiths Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PlayAGS presently has a consensus target price of $24.75, suggesting a potential upside of 7.84%. Given PlayAGS’s stronger consensus rating and higher possible upside, research analysts clearly believe PlayAGS is more favorable than Smiths Group.
PlayAGS beats Smiths Group on 6 of the 10 factors compared between the two stocks.
PlayAGS, Inc. designs and supplies electronic gaming machines (EGMs), and other products and services for the gaming industry in the United States and internationally. It operates in three segments: EGMs, Table Products, and Interactive. The EGM segment offers various video slot titles, which include ICON, Halo, Colossal Diamonds cabinet, and Orion; and conversion kits that allow existing game titles to be converted to other game titles offered within that operating platform. The Table Products segment provides table products, side-bets, and table technology related to blackjack, poker, baccarat, craps, and roulette, as well as ancillary table products. Its brands include In-Bet, Buster Blackjack, Double Draw Poker, and Criss Cross Poker. The Interactive segment offers social gaming products through its mobile apps, Lucky Play Casino and Vegas Fever. It serves Class II Native American and Mexican gaming jurisdictions, and Class III Native American, commercial, and charity jurisdictions. The company was formerly known as AP Gaming Holdco, Inc. and changed its name to PlayAGS, Inc. in December 2017. PlayAGS, Inc. was founded in 2005 and is headquartered in Las Vegas, Nevada.
About Smiths Group
Smiths Group plc designs, manufactures, and sells various products and services for the threat and contraband detection, medical devices, energy, communications, and engineered components markets worldwide. It operates through John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect, and Flex-Tek divisions. The John Crane division offers engineered products and services comprising mechanical seals, seal support systems, engineered bearings, power transmission couplings, and specialist filtration systems. The Smiths Medical division provides specialty medical devices and consumables, including infusion systems, vascular access, patient airway and temperature management equipment, and specialty devices in the areas of diagnostics and emergency patient transport. This division serves hospitals, surgery centers, clinics, and home care providers; and OEMs. The Smiths Detection division offers detection technologies comprising sensors and systems that detect and identify explosives, narcotics, weapons, chemical agents, biohazards, and contraband. The Smiths Interconnect division provides electronic and radio frequency board-level and waveguide devices, connectors, cables, test sockets, and sub-systems for the defense, aerospace, space, rail, medical, and semiconductor test end markets. The Flex-Tek division offers engineered components that heat and move fluids and gases for aerospace, consumer products, construction, medical, and industrial applications. The company was formerly known as Smiths Industries and changed its name to Smiths Group plc in 2000. Smiths Group plc was founded in 1851 and is headquartered in London, the United Kingdom.
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