Financial Analysis: PlayAGS (NYSE:AGS) vs. Galileo Acquisition (NYSE:GLEO)

Galileo Acquisition (NYSE:GLEO) and PlayAGS (NYSE:AGS) are both small-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Galileo Acquisition and PlayAGS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galileo Acquisition N/A -3,653.35% -9.17%
PlayAGS -18.33% -76.20% -5.36%

Valuation and Earnings

This table compares Galileo Acquisition and PlayAGS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Galileo Acquisition N/A N/A -$1.53 million N/A N/A
PlayAGS $167.01 million 1.60 -$85.38 million ($2.31) -3.16

Galileo Acquisition has higher earnings, but lower revenue than PlayAGS.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Galileo Acquisition and PlayAGS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galileo Acquisition 0 0 1 0 3.00
PlayAGS 0 2 7 0 2.78

Galileo Acquisition presently has a consensus price target of $14.00, indicating a potential upside of 38.89%. PlayAGS has a consensus price target of $11.89, indicating a potential upside of 63.08%. Given PlayAGS’s higher probable upside, analysts clearly believe PlayAGS is more favorable than Galileo Acquisition.

Volatility & Risk

Galileo Acquisition has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, PlayAGS has a beta of 3.5, meaning that its stock price is 250% more volatile than the S&P 500.

Institutional and Insider Ownership

58.2% of Galileo Acquisition shares are held by institutional investors. Comparatively, 81.8% of PlayAGS shares are held by institutional investors. 2.8% of PlayAGS shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

PlayAGS beats Galileo Acquisition on 8 of the 11 factors compared between the two stocks.

Galileo Acquisition Company Profile

Galileo Acquisition Corp. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or related business combination with one or more businesses. It intends to focus on companies operating in the consumer, retail, food and beverage, fashion and luxury, specialty industrial, technology or healthcare sectors. Galileo Acquisition Corp. was incorporated in 2019 and is based in New York, New York.

PlayAGS Company Profile

AGS is a global company focused on creating a diverse mix of entertaining gaming experiences for every kind of player. Their roots are firmly planted in the Class II Native American gaming market, but their customer-centric culture and growth have helped them branch out to become a leading all-inclusive commercial gaming supplier. Powered by high-performing Class II and Class III slot products, an expansive table products portfolio, highly rated social casino solutions for players and operators, and best-in-class service, they offer an unmatched value proposition for their casino partners.

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