Loop Industries (NASDAQ:LOOP – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares Loop Industries and Inspired Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Loop Industries | $10.89 million | 7.36 | -$15.06 million | ($0.28) | -6.00 |
| Inspired Entertainment | $297.10 million | 0.85 | $64.80 million | $2.52 | 3.71 |
Analyst Recommendations
This is a summary of current ratings and target prices for Loop Industries and Inspired Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Loop Industries | 0 | 0 | 0 | 0 | 0.00 |
| Inspired Entertainment | 0 | 1 | 4 | 2 | 3.14 |
Inspired Entertainment has a consensus target price of $14.00, indicating a potential upside of 49.89%. Given Inspired Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Inspired Entertainment is more favorable than Loop Industries.
Insider and Institutional Ownership
4.9% of Loop Industries shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 45.9% of Loop Industries shares are held by company insiders. Comparatively, 12.9% of Inspired Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Loop Industries and Inspired Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Loop Industries | -120.79% | -354.97% | -36.84% |
| Inspired Entertainment | 24.68% | -181.89% | 18.18% |
Volatility and Risk
Loop Industries has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.
Summary
Inspired Entertainment beats Loop Industries on 12 of the 15 factors compared between the two stocks.
About Loop Industries
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.
About Inspired Entertainment
Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
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