Agilysys (NASDAQ:AGYS) and Scientific Games (NASDAQ:SGMS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
Volatility & Risk
Agilysys has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Scientific Games has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.
Profitability
This table compares Agilysys and Scientific Games' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Agilysys | -16.61% | -28.60% | -13.45% |
Scientific Games | -18.48% | N/A | -3.74% |
Earnings & Valuation
This table compares Agilysys and Scientific Games' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Agilysys | $160.76 million | 7.96 | $-34,070,000.00 | ($1.47) | -36.84 |
Scientific Games | $3.40 billion | 1.30 | $-130,000,000.00 | $0.23 | 201.26 |
Agilysys has higher earnings, but lower revenue than Scientific Games. Agilysys is trading at a lower price-to-earnings ratio than Scientific Games, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.8% of Agilysys shares are owned by institutional investors. Comparatively, 89.5% of Scientific Games shares are owned by institutional investors. 21.7% of Agilysys shares are owned by insiders. Comparatively, 40.6% of Scientific Games shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Agilysys and Scientific Games, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Agilysys | 0 | 3 | 2 | 0 | 2.40 |
Scientific Games | 1 | 2 | 4 | 0 | 2.43 |
Agilysys currently has a consensus price target of $35.50, suggesting a potential downside of 34.44%. Scientific Games has a consensus price target of $38.75, suggesting a potential downside of 16.29%. Given Scientific Games' stronger consensus rating and higher probable upside, analysts plainly believe Scientific Games is more favorable than Agilysys.
Summary
Scientific Games beats Agilysys on 10 of the 14 factors compared between the two stocks.