Roblox (NYSE:RBLX – Get Free Report) and Bragg Gaming Group (NASDAQ:BRAG – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
Institutional & Insider Ownership
94.5% of Roblox shares are owned by institutional investors. Comparatively, 4.0% of Bragg Gaming Group shares are owned by institutional investors. 12.9% of Roblox shares are owned by insiders. Comparatively, 26.4% of Bragg Gaming Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Roblox has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Bragg Gaming Group has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roblox | 3 | 8 | 20 | 0 | 2.55 |
| Bragg Gaming Group | 1 | 4 | 1 | 0 | 2.00 |
Roblox currently has a consensus price target of $136.41, indicating a potential upside of 43.22%. Bragg Gaming Group has a consensus price target of $7.00, indicating a potential upside of 209.73%. Given Bragg Gaming Group’s higher possible upside, analysts plainly believe Bragg Gaming Group is more favorable than Roblox.
Earnings & Valuation
This table compares Roblox and Bragg Gaming Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roblox | $3.60 billion | 17.31 | -$935.38 million | ($1.43) | -66.60 |
| Bragg Gaming Group | $105.55 million | 0.54 | -$5.57 million | ($0.34) | -6.65 |
Bragg Gaming Group has lower revenue, but higher earnings than Roblox. Roblox is trading at a lower price-to-earnings ratio than Bragg Gaming Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Roblox and Bragg Gaming Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roblox | -21.70% | -314.20% | -12.47% |
| Bragg Gaming Group | -7.08% | -11.05% | -7.32% |
Summary
Bragg Gaming Group beats Roblox on 8 of the 14 factors compared between the two stocks.
About Roblox
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
About Bragg Gaming Group
Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
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