Critical Comparison: Kingsoft (OTCMKTS:KSFTF) vs. PLAYSTUDIOS (NASDAQ:MYPS)

PLAYSTUDIOS (NASDAQ:MYPS) and Kingsoft (OTCMKTS:KSFTF) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for PLAYSTUDIOS and Kingsoft, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLAYSTUDIOS	0	3	1	0	2.25
Kingsoft	0	0	0	0	N/A

PLAYSTUDIOS presently has a consensus target price of $4.50, suggesting a potential upside of 61.87%. Given PLAYSTUDIOS’s higher possible upside, research analysts clearly believe PLAYSTUDIOS is more favorable than Kingsoft.

Valuation & Earnings

This table compares PLAYSTUDIOS and Kingsoft’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLAYSTUDIOS	$310.89 million	1.22	-$19.39 million	($0.15)	-18.53
Kingsoft	N/A	N/A	N/A	$0.56	4.61

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

Profitability

This table compares PLAYSTUDIOS and Kingsoft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PLAYSTUDIOS	-6.24%	-7.19%	-6.06%
Kingsoft	N/A	N/A	N/A

Insider & Institutional Ownership

37.5% of PLAYSTUDIOS shares are owned by institutional investors. Comparatively, 6.3% of Kingsoft shares are owned by institutional investors. 14.0% of PLAYSTUDIOS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

About PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.

About Kingsoft

Kingsoft Corporation Limited, an investment holding company, engages in the design, research and development, sale, and marketing of the office software products and services of WPS Office in Mainland China, Hong Kong, and internationally. It operates in two segments, Office Software and Services, and Entertainment Software and Others. The company is also involved in the research and development of games, and the provision of PC games and mobile games services. In addition, it engages in the research, development, operation, and distribution of games; research and development of online games; marketing and operation of SMS, and wireless service of online games and application software; sale and operation of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. Kingsoft Corporation Limited was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.