Gambling.com Group (NASDAQ:GAMB – Get Free Report) and System1 (NYSE:SST – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Profitability
This table compares Gambling.com Group and System1’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gambling.com Group | 1.23% | 37.56% | 19.42% |
| System1 | -22.78% | -109.87% | -15.60% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Gambling.com Group and System1, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gambling.com Group | 1 | 3 | 6 | 0 | 2.50 |
| System1 | 1 | 0 | 1 | 0 | 2.00 |
Risk and Volatility
Gambling.com Group has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, System1 has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Insider and Institutional Ownership
72.3% of Gambling.com Group shares are held by institutional investors. Comparatively, 87.5% of System1 shares are held by institutional investors. 57.9% of Gambling.com Group shares are held by insiders. Comparatively, 13.2% of System1 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Gambling.com Group and System1″s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gambling.com Group | $127.18 million | 1.47 | $30.68 million | $0.40 | 13.10 |
| System1 | $289.78 million | 0.12 | -$74.67 million | ($8.53) | -0.41 |
Gambling.com Group has higher earnings, but lower revenue than System1. System1 is trading at a lower price-to-earnings ratio than Gambling.com Group, indicating that it is currently the more affordable of the two stocks.
Summary
Gambling.com Group beats System1 on 10 of the 14 factors compared between the two stocks.
About Gambling.com Group
Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.
About System1
System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.
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