Six Flags Entertainment (NYSE:FUN – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
Risk & Volatility
Six Flags Entertainment has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Profitability
This table compares Six Flags Entertainment and Inspired Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Six Flags Entertainment | -31.91% | -15.95% | -0.37% |
| Inspired Entertainment | -2.96% | -30.08% | -0.36% |
Valuation and Earnings
This table compares Six Flags Entertainment and Inspired Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Six Flags Entertainment | $2.91 billion | 0.39 | -$1.60 billion | ($9.14) | -1.22 |
| Inspired Entertainment | $304.10 million | 0.39 | -$17.00 million | ($0.26) | -17.23 |
Inspired Entertainment has lower revenue, but higher earnings than Six Flags Entertainment. Inspired Entertainment is trading at a lower price-to-earnings ratio than Six Flags Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Six Flags Entertainment and Inspired Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Six Flags Entertainment | 2 | 6 | 6 | 0 | 2.29 |
| Inspired Entertainment | 1 | 2 | 4 | 0 | 2.43 |
Six Flags Entertainment presently has a consensus price target of $14.85, indicating a potential upside of 33.51%. Inspired Entertainment has a consensus price target of $9.81, indicating a potential upside of 119.08%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Inspired Entertainment is more favorable than Six Flags Entertainment.
Insider and Institutional Ownership
64.7% of Six Flags Entertainment shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 2.1% of Six Flags Entertainment shares are held by insiders. Comparatively, 14.4% of Inspired Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Inspired Entertainment beats Six Flags Entertainment on 9 of the 14 factors compared between the two stocks.
About Six Flags Entertainment
Six Flags Entertainment Corporation operates amusement parks, water parks and related resort properties. Its attractions include rides, live entertainment, family activities, dining and seasonal events, with access offered through single-day tickets, season passes and other guest programs. The company serves visitors across the United States, Canada and Mexico through parks that include properties formerly operated by both the Six Flags and Cedar Fair organizations. Six Flags Entertainment was formed when Cedar Fair and Six Flags combined in a merger completed in 2024.
About Inspired Entertainment
Inspired Entertainment, Inc. is a business-to-business gaming technology company that develops and supplies content, software, hardware and related services for regulated gaming, betting and leisure markets. Its customers include bookmakers, casinos, gaming operators, lotteries and other entertainment venues. The company’s offerings include gaming terminals and server-based gaming systems, digital casino games, virtual sports and other simulated sporting events, as well as interactive gaming solutions for online and mobile platforms.
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