Comparing Sinclair (NASDAQ:SBGI) & GameSquare (NASDAQ:GAME)

GameSquare (NASDAQ:GAME) and Sinclair (NASDAQ:SBGI) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares GameSquare and Sinclair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GameSquare	-96.06%	7.97%	3.14%
Sinclair	1.60%	-16.09%	-0.95%

Insider & Institutional Ownership

64.2% of GameSquare shares are held by institutional investors. Comparatively, 41.7% of Sinclair shares are held by institutional investors. 6.8% of GameSquare shares are held by company insiders. Comparatively, 42.1% of Sinclair shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

GameSquare has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Sinclair has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for GameSquare and Sinclair, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameSquare	1	0	1	1	2.67
Sinclair	1	3	2	0	2.17

Sinclair has a consensus target price of $19.40, suggesting a potential upside of 51.80%. Given Sinclair’s higher probable upside, analysts clearly believe Sinclair is more favorable than GameSquare.

Valuation & Earnings

This table compares GameSquare and Sinclair”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$45.00 million	0.90	-$40.10 million	($4.96)	-0.63
Sinclair	$3.17 billion	0.29	-$112.00 million	$0.75	17.04

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

Summary

GameSquare beats Sinclair on 8 of the 15 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 Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.