Wanda Sports Group (NASDAQ:WSG) and Esports Entertainment Group (NASDAQ:GMBL) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
1.9% of Wanda Sports Group shares are held by institutional investors. Comparatively, 1.0% of Esports Entertainment Group shares are held by institutional investors. 30.6% of Esports Entertainment Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Wanda Sports Group and Esports Entertainment Group, as reported by MarketBeat.
Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating ScoreWanda Sports Group02102.33Esports Entertainment Group0000N/A
Wanda Sports Group currently has a consensus target price of $4.17, suggesting a potential upside of 66.67%. Given Wanda Sports Group’s higher possible upside, equities research analysts clearly believe Wanda Sports Group is more favorable than Esports Entertainment Group.
This table compares Wanda Sports Group and Esports Entertainment Group’s net margins, return on equity and return on assets.
Net MarginsReturn on EquityReturn on AssetsWanda Sports Group-48.51%-108.31%-15.76%Esports Entertainment GroupN/AN/AN/A
Earnings & Valuation
This table compares Wanda Sports Group and Esports Entertainment Group’s top-line revenue, earnings per share and valuation.
Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings RatioWanda Sports Group$1.16 billion0.30-$308.72 million($2.45)-1.02Esports Entertainment GroupN/AN/A-$10.35 million($0.68)-10.15
Esports Entertainment Group has lower revenue, but higher earnings than Wanda Sports Group. Esports Entertainment Group is trading at a lower price-to-earnings ratio than Wanda Sports Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Wanda Sports Group has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Esports Entertainment Group has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Esports Entertainment Group beats Wanda Sports Group on 7 of the 11 factors compared between the two stocks.
About Wanda Sports Group
Wanda Sports Group Company Limited operates as a sports events, media, and marketing platform worldwide. It operates through three segments: Spectator Sports; Digital, Production, Sports Solutions (DPSS); and Mass Participation. The Spectator Sports segment monetizes rights acquired from rights owners under contractual arrangements through media distribution, sponsorship, and marketing activities; and provides services to its rights-in partners and rights-out clients covering event operation and support, media production, digital solutions, and ancillary services. This segment includes sports, such as football, and winter and summer sports. The DPSS segment offers a suite of specialized sports-related services, including digital media solutions, media and program production, host broadcasting, marketing, event operations, brand development, and advertising solutions. The Mass Participation segment organizes, operates, and monetizes a range of mass participation sports, including triathlon, running, mountain biking, road cycling, obstacle course racing, and trail running through a portfolio of brands and other intellectual property. It also engages in the rights distribution, broadcast hosting, digital media and entertainment, program production, event operations and licensing, and brand development and sponsorship activities. The company was founded in 2018 and is headquartered in Beijing, the People’s Republic of China. Wanda Sports Group Company Limited is a subsidiary of Dalian Wanda Group Co.,Ltd.
About Esports Entertainment Group
Esports Entertainment Group, Inc. operates as an online gambling company in Canada. The company offers esports entertainment, esports wagering, and iGaming and traditional sports betting services, as well as professional and amateur esports events. It also operates vie.gg, an online esports wagering website. The company was formerly known as VGambling, Inc. and changed its name to Esports Entertainment Group, Inc. in May 2017. Esports Entertainment Group, Inc. was incorporated in 2008 and is based in Birkirkara, Malta.
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