Light & Wonder (NASDAQ:LNW – Get Rating) and Arbe Robotics (NASDAQ:ARBE – Get Rating) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Valuation and Earnings
This table compares Light & Wonder and Arbe Robotics’ top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Light & Wonder | $2.15 billion | 2.42 | $371.00 million | $4.15 | 13.10 |
Arbe Robotics | $2.25 million | 189.21 | -$58.09 million | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Light & Wonder and Arbe Robotics, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Light & Wonder | 0 | 0 | 0 | 0 | N/A |
Arbe Robotics | 0 | 0 | 5 | 0 | 3.00 |
Light & Wonder presently has a consensus target price of $53.00, indicating a potential downside of 2.48%. Arbe Robotics has a consensus target price of $16.00, indicating a potential upside of 137.04%. Given Arbe Robotics’ higher possible upside, analysts plainly believe Arbe Robotics is more favorable than Light & Wonder.
Volatility and Risk
Light & Wonder has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of -0.41, indicating that its stock price is 141% less volatile than the S&P 500.
Profitability
This table compares Light & Wonder and Arbe Robotics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Light & Wonder | 16.02% | -8.77% | 2.45% |
Arbe Robotics | N/A | -342.93% | -44.06% |
Institutional and Insider Ownership
93.2% of Light & Wonder shares are owned by institutional investors. Comparatively, 17.1% of Arbe Robotics shares are owned by institutional investors. 1.0% of Light & Wonder shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Light & Wonder beats Arbe Robotics on 8 of the 11 factors compared between the two stocks.
About Light & Wonder (Get Rating)
Scientific Games Corporation, doing business as Light & Wonder Inc., develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. The company's Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, conversion game kits, and spare parts; table products, including shufflers; and perpetual licenses to proprietary table games. It also supplies game content, gaming machines; provides table game products and services to licensed gaming entities; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services of customer casino management systems. The company's SciPlay segment develops and publishes digital games on mobile and web platforms. It sells virtual coins, chips, or bingo cards, which players can use to play slot games, table games, or bingo games. Its iGaming segment provides a suite of digital gaming content, including digital real-money gaming, distribution platforms, content, products, and services. This segment also offers the Open Platform System, which offers a range of reporting and administrative functions and tools providing operators control over various areas of digital gaming operations. The company also offers software design, development, licensing, maintenance, support services, and technology solutions. Majestic Corporation Limited was incorporated in 1984 and is based in Las Vegas, Nevada.
About Arbe Robotics (Get Rating)
Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in Israel and the United States. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
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