Head to Head Contrast: Motorsport Games (NASDAQ:MSGM) and GameSquare (NASDAQ:GAME)

GameSquare (NASDAQ:GAME) and Motorsport Games (NASDAQ:MSGM) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares GameSquare and Motorsport Games”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$96.20 million	0.39	-$48.75 million	($1.04)	-0.37
Motorsport Games	$8.69 million	2.74	-$2.75 million	$0.40	10.30

Motorsport Games has lower revenue, but higher earnings than GameSquare. GameSquare is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

64.3% of GameSquare shares are owned by institutional investors. Comparatively, 1.7% of Motorsport Games shares are owned by institutional investors. 5.1% of GameSquare shares are owned by insiders. Comparatively, 17.3% of Motorsport Games shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for GameSquare and Motorsport Games, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameSquare	1	0	0	0	1.00
Motorsport Games	0	1	0	0	2.00

Profitability

This table compares GameSquare and Motorsport Games’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GameSquare	-49.30%	-168.15%	-48.86%
Motorsport Games	34.24%	86.01%	42.20%

Volatility and Risk

GameSquare has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Summary

Motorsport Games beats GameSquare on 10 of the 12 factors compared between the two stocks.

About GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.