Head-To-Head Analysis: Altaba (NASDAQ:AABA) and Scientific Games (NASDAQ:SGMS)

Altaba (NASDAQ:AABA) and Scientific Games (NASDAQ:SGMS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Risk & Volatility

Altaba has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, Scientific Games has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altaba $5.17 billion 7.03 -$214.32 million N/A N/A
Scientific Games $3.36 billion 0.57 -$352.40 million ($0.54) -38.46

Altaba has higher revenue and earnings than Scientific Games.

Analyst Recommendations

This is a summary of current recommendations and price targets for Altaba and Scientific Games, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altaba 0 1 1 0 2.50
Scientific Games 1 3 3 0 2.29

Altaba currently has a consensus price target of $96.50, suggesting a potential upside of 37.88%. Scientific Games has a consensus price target of $29.00, suggesting a potential upside of 39.62%. Given Scientific Games’ higher probable upside, analysts clearly believe Scientific Games is more favorable than Altaba.

Profitability

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

Net Margins Return on Equity Return on Assets
Altaba N/A N/A N/A
Scientific Games -5.15% -0.60% 0.18%

Insider & Institutional Ownership

78.9% of Altaba shares are held by institutional investors. Comparatively, 64.2% of Scientific Games shares are held by institutional investors. 0.0% of Altaba shares are held by insiders. Comparatively, 40.6% of Scientific Games shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Altaba beats Scientific Games on 7 of the 12 factors compared between the two stocks.

Altaba Company Profile

Altaba Inc. operates as a non-diversified, closed-end management investment company in the United States. Its assets consist primarily of equity investments, short-term debt investments, and cash. The company was formerly known as Yahoo! Inc. and changed its name to Altaba Inc. in June 2017. Altaba Inc. was founded in 1994 and is based in New York, New York.

Scientific Games Company Profile

Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, and digital gaming industries worldwide. The company's Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, 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 gaming machines; provides gaming operations and licensing arrangements; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services of customer casino management systems. The company's Lottery segment designs, prints, and sells instant lottery products; designs and manufactures instant games tickets; offers instant products planning, monitoring, management system, warehousing, inventory management, distribution, marketing, and game support functions; supplies player loyalty programs, merchandising services, and interactive marketing campaigns; and sublicenses brands for lottery products and lottery-related promotional products. It also provides software, hardware, and related services for lottery operations; and lottery systems software maintenance and support services. The company's Social segment sells virtual coins, chips, or bingo cards; and third-party branded games and original content through mobile and Web platforms. Its Digital segment provides digital gaming and sports wagering solutions and services, including digital RMG and sports wagering solutions, distribution platforms, content, products, and services; software design, development, licensing, maintenance, and support services; Open Platform Systems; and content aggregation platforms. The company was founded in 1984 and is headquartered in Las Vegas, Nevada.

Receive News & Ratings for Altaba Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Altaba and related companies with MarketBeat.com's FREE daily email newsletter.