Contrasting CD Projekt (OTC:OTGLF) and Skillz (NYSE:SKLZ)

Skillz (NYSE:SKLZ) and CD Projekt (OTC:OTGLF) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Skillz and CD Projekt, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillz	0	3	2	0	2.40
CD Projekt	0	0	0	0	N/A

Skillz presently has a consensus target price of $10.25, suggesting a potential upside of 63.48%. Given Skillz’s higher possible upside, research analysts clearly believe Skillz is more favorable than CD Projekt.

Profitability

This table compares Skillz and CD Projekt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skillz	-47.40%	-40.12%	-21.34%
CD Projekt	N/A	N/A	N/A

Insider & Institutional Ownership

19.4% of Skillz shares are owned by institutional investors. 22.7% of Skillz shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Skillz and CD Projekt’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillz	$150.11 million	0.90	-$106.69 million	($5.11)	-1.23
CD Projekt	N/A	N/A	N/A	N/A	N/A

CD Projekt has lower revenue, but higher earnings than Skillz.

Summary

Skillz beats CD Projekt on 5 of the 8 factors compared between the two stocks.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.

About CD Projekt

CD Projekt S.A., together its subsidiaries, engages in the development, publishing, and digital distribution of video games for personal computers and video game consoles in Poland. The company operates through two segments, CD PROJEKT RED and GOG.com. Its product portfolio comprises The Witcher; The Witcher 2: Assassins of Kings; The Witcher 3: Wild Hunt; Thronebreaker: The Witcher Tales; Gwent: The Witcher Card game; and Cyberpunk 2077. The company also distributes videogames through GOG.com distribution platform and the GOG GALAXY application, as well as online channels. In addition, it exports its products in Europe, North America, South America, Asia, Australia, and Africa. CD Projekt S.A. was incorporated in 2001 and is headquartered in Warsaw, Poland.