Analyzing Light & Wonder (NASDAQ:LNW) and GCL Global (NASDAQ:GCL)

Light & Wonder (NASDAQ:LNW) and GCL Global (NASDAQ:GCL) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Light & Wonder and GCL Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Light & Wonder	10.89%	71.17%	8.73%
GCL Global	N/A	N/A	N/A

Insider & Institutional Ownership

88.1% of Light & Wonder shares are owned by institutional investors. Comparatively, 36.6% of GCL Global shares are owned by institutional investors. 2.2% of Light & Wonder shares are owned by company insiders. Comparatively, 49.4% of GCL Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Light & Wonder and GCL Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Light & Wonder	1	4	5	0	2.40
GCL Global	1	0	0	0	1.00

Light & Wonder presently has a consensus price target of $105.00, indicating a potential upside of 15.21%. Given Light & Wonder’s stronger consensus rating and higher possible upside, equities analysts clearly believe Light & Wonder is more favorable than GCL Global.

Earnings & Valuation

This table compares Light & Wonder and GCL Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Light & Wonder	$3.22 billion	2.31	$336.00 million	$4.59	19.86
GCL Global	$142.07 million	1.08	$5.59 million	($0.02)	-63.00

Light & Wonder has higher revenue and earnings than GCL Global. GCL Global is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Light & Wonder has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, GCL Global has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Summary

Light & Wonder beats GCL Global on 13 of the 14 factors compared between the two stocks.

About Light & Wonder

Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.

About GCL Global

GCL Global Holdings Ltd. unites people through immersive games and entertainment experiences, enabling creators to deliver engaging content and fun gameplay experiences to gaming communities worldwide with a strategic focus on the rapidly expanding Asian gaming market.

Drawing on a deep understanding of gaming trends and market dynamics, GCL Group leverages its diverse portfolio of digital and physical content to bridge cultures and audiences by introducing Asian-developed IP to a global audience across consoles, PCs, and streaming platforms.