Zynga (NASDAQ: ZNGA) and Majesco Entertainment Company (NASDAQ:COOL) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitabiliy and institutional ownership.

Valuation and Earnings

This table compares Zynga and Majesco Entertainment Company’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Zynga $748.98 million 4.13 -$79.42 million ($0.11) -32.73
Majesco Entertainment Company $953,999.00 129.63 -$119.00 million N/A N/A

Zynga has higher revenue and earnings than Majesco Entertainment Company.

Risk and Volatility

Zynga has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Majesco Entertainment Company has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Zynga and Majesco Entertainment Company, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zynga 0 4 8 0 2.67
Majesco Entertainment Company 0 0 1 0 3.00

Zynga presently has a consensus price target of $3.96, indicating a potential upside of 10.10%. Majesco Entertainment Company has a consensus price target of $8.00, indicating a potential downside of 65.44%. Given Zynga’s higher probable upside, analysts plainly believe Zynga is more favorable than Majesco Entertainment Company.

Institutional & Insider Ownership

67.0% of Zynga shares are held by institutional investors. Comparatively, 4.6% of Majesco Entertainment Company shares are held by institutional investors. 12.4% of Zynga shares are held by company insiders. Comparatively, 13.4% of Majesco Entertainment Company shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Zynga and Majesco Entertainment Company’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zynga -12.16% -5.25% -4.45%
Majesco Entertainment Company -12,388.23% N/A -1,603.87%

Summary

Zynga beats Majesco Entertainment Company on 8 of the 12 factors compared between the two stocks.

Zynga Company Profile

Zynga Inc. is a provider of social game services. The Company develops, markets and operates social games as live services played on mobile platforms, such as iPhone Operating System (iOS) operating system and Android operating system and social networking sites, such as Facebook. The Company has developed a range of social games, including games in its Slots, Words With Friends, Zynga Poker and FarmVille franchises. It operates its games as live services and updates them with new features. It analyzes the data generated by its players’ game play and social interactions to guide the creation of new content and features. The Company operates its games as live services that are available anytime and anywhere. The Company invests in game categories, including Social Casino, Casual, Action Strategy and Invest Express. Social Casino includes Zynga Poker and its Slots games, such as Hit It Rich! Slots, Wizard of Oz Slots, Willy Wonka and the Chocolate Factory Slots, and Black Diamond Casino.

Majesco Entertainment Company Company Profile

PolarityTE, Inc., formerly Majesco Entertainment Company, is the owner of patent applications and know-how related to regenerative medicine and tissue engineering, as well as software applications used in diagnosis and treatment related to regenerative medicine. The Company seeks to develop and obtain regulatory approval for technology that will utilize a patient’s own tissue substrates for the regeneration of skin, bone, muscle, cartilage, fat, blood vessels and nerves. The Company’s PolarityTE platform simplifies regeneration and allows cells to function naturally. The platform can be applied across all cells, tissues and composite structures. The Company focuses on various products, including SkinTE, OsteoTE, AngioTE, MyoTE, CartTE, AdiposeTE and NeuralTE. The Company, through SkinTE, is focused on supplying an autologous construct to regenerate a patient’s skin due to a variety of injuries and conditions.

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