Reviewing Rush Street Interactive (NYSE:RSI) & UbiSoft Entertainment (OTCMKTS:UBSFY)

UbiSoft Entertainment (OTCMKTS:UBSFY) and Rush Street Interactive (NYSE:RSI) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for UbiSoft Entertainment and Rush Street Interactive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UbiSoft Entertainment	1	1	0	1	2.33
Rush Street Interactive	0	3	7	1	2.82

Rush Street Interactive has a consensus price target of $20.75, indicating a potential upside of 13.05%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Rush Street Interactive is more favorable than UbiSoft Entertainment.

Profitability

This table compares UbiSoft Entertainment and Rush Street Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UbiSoft Entertainment	N/A	N/A	N/A
Rush Street Interactive	2.83%	17.11%	8.27%

Risk & Volatility

UbiSoft Entertainment has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Valuation and Earnings

This table compares UbiSoft Entertainment and Rush Street Interactive”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UbiSoft Entertainment	$2.04 billion	0.47	-$170.71 million	N/A	N/A
Rush Street Interactive	$924.08 million	4.56	$2.39 million	$0.25	73.42

Rush Street Interactive has lower revenue, but higher earnings than UbiSoft Entertainment.

Insider & Institutional Ownership

0.1% of UbiSoft Entertainment shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 56.9% of Rush Street Interactive shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Rush Street Interactive beats UbiSoft Entertainment on 11 of the 12 factors compared between the two stocks.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.

About Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.