Critical Contrast: Escalade (NASDAQ:ESCA) and Simulated Environment Concepts (OTCMKTS:SMEV)

Simulated Environment Concepts (OTCMKTS:SMEV) and Escalade (NASDAQ:ESCA) 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 risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Insider and Institutional Ownership

0.2% of Simulated Environment Concepts shares are held by institutional investors. Comparatively, 65.2% of Escalade shares are held by institutional investors. 62.6% of Simulated Environment Concepts shares are held by insiders. Comparatively, 28.8% of Escalade shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Simulated Environment Concepts and Escalade”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulated Environment Concepts	N/A	N/A	N/A	N/A	N/A
Escalade	$251.51 million	0.73	$12.99 million	$0.91	14.54

Escalade has higher revenue and earnings than Simulated Environment Concepts.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Simulated Environment Concepts and Escalade, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulated Environment Concepts	0	0	0	0	0.00
Escalade	0	2	0	0	2.00

Profitability

This table compares Simulated Environment Concepts and Escalade’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simulated Environment Concepts	N/A	N/A	N/A
Escalade	5.26%	7.49%	5.65%

Volatility & Risk

Simulated Environment Concepts has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Escalade has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Summary

Escalade beats Simulated Environment Concepts on 6 of the 8 factors compared between the two stocks.

About Simulated Environment Concepts

Simulated Environment Concepts, Inc. engages in the development and manufacture of medical, health, and wellness equipments in the United States and internationally. Its products include SpaCapsule, a robotic massage therapy system used for medical rehabilitation, relaxation, weight loss, slimming, cellulite management, and general wellness; and PTjetCapsule. The company also offers components, parts, accessories, and peripheral massage and health related items. Its products are used in various environments, such as corporate employee lounges, relaxation centers, gyms and health clubs, doctor's offices, hotels, tanning and beauty salons/spas, luxury accommodations, gulf clubs, ski lounges, shopping centers and malls, airports, cruise ships, luxury yachts, and homes. Simulated Environment Concepts, Inc. was founded in 1993 and is based in Miami, Florida.

About Escalade

Escalade, Incorporated, together with its subsidiaries, manufactures, distributes, imports, and sells sporting goods in North America, Europe, and internationally. The company provides various sporting goods brands in basketball goals, archery, indoor and outdoor game recreation, and fitness products. It offers archery products under the Bear Archery, Trophy Ridge, Whisker Biscuit, Cajun Bowfishing, Karnage, SIK, BearX, and Bear Traditional brand names; table tennis products under the STIGA and Ping-Pong brands; basketball goals under the Goalrilla, Goaliath, Silverback, Hoopstar, and Goalsetter brand names; and pickleball under the Onix, DURA, and Pickleball Now brands. The company also provides play systems under the Woodplay, Jack & June, and Childlife brands; fitness products under the STEP, Lifeline, Kettleworx, Natural Fitness, USW, and PER4M brand names; safety products under the USWeight brand; hockey and soccer game tables under the Triumph Sports, Atomic, American Legend, Air Hockey, and HJ Scott brands; and billiard tables and accessories under the American Heritage Billiards, Brunswick Billiards, Gold Crown, Centennial, Cue&Case, Lucasi, Mizerak, PureX, Rage, Players, Minnesota Fats, and Mosconi brand names. In addition, it offers darting products under the Unicorn, Winmau, DMI, Prodigy, Arachnid, Accudart, and Nodor brands; water sports products under the RAVE Sports brand; and outdoor game products under the Victory Tailgate, Triumph Sports, ACL, and Zume Games brand names. The company provides its products through sporting goods retailers, specialty dealers, online retailers, direct-to-consumer, e-commerce, traditional department stores, and mass merchants. Escalade, Incorporated was founded in 1919 and is headquartered in Evansville, Indiana.