Analyzing PLAYSTUDIOS (NASDAQ:MYPS) and Certara (NASDAQ:CERT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Certara	-8.34%	3.43%	2.33%
PLAYSTUDIOS	-8.75%	-9.15%	-7.29%

Insider and Institutional Ownership

74.0% of Certara shares are held by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are held by institutional investors. 2.4% of Certara shares are held by company insiders. Comparatively, 14.3% of PLAYSTUDIOS shares are held by company 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.

Volatility & Risk

Certara has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Certara and PLAYSTUDIOS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Certara	0	6	2	0	2.25
PLAYSTUDIOS	1	3	2	0	2.17

Certara currently has a consensus price target of $15.92, indicating a potential upside of 14.76%. PLAYSTUDIOS has a consensus price target of $3.63, indicating a potential upside of 91.80%. Given PLAYSTUDIOS’s higher probable upside, analysts plainly believe PLAYSTUDIOS is more favorable than Certara.

Valuation & Earnings

This table compares Certara and PLAYSTUDIOS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Certara	$354.34 million	6.30	-$55.36 million	($0.20)	-69.35
PLAYSTUDIOS	$310.89 million	0.76	-$19.39 million	($0.19)	-9.95

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

Summary

Certara beats PLAYSTUDIOS on 8 of the 13 factors compared between the two stocks.

About Certara

Certara, Inc., together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics. The company provides Simcyp Simulator, a mechanistic biosimulation platform mechanistic biosimulation investigational new drug and translational stages; Simcyp Biopharmaceutics, used to identify and refine drug formulations; and Simcyp Secondary Intelligence which integrates toxicology with quantitative analysis of networks of molecular and functional biological changes to identify drug toxicity and adverse drug reactions. In addition, it offers Phoenix WinNonlin, a platform for non-compartmental analysis, pharmacokinetic/pharmacodynamic, and toxicokinetic; phoenix hosted, that provides a secured and validated certara amazon web services workspace; Phoenix NLME, a population modeling and simulation software for nonlinear mixed effects models; and pirana modeling workbench. Further, the company provides pinnacle 21, a cloud-based platform for clinical data automation, standardization, and validation; Pinnacle 21 Data Exchange, used to define data standards and specifications; and Metadata Repository, to enable study design using controlled and standardized data. It serves life sciences companies, biopharmaceutical companies, research organizations, academic institutions, and global regulators, as well as animal health, crop science, bio science, medical devices, and public sector industries. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.

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.