Comparing Motorsport Games (NASDAQ:MSGM) & Bally’s (NYSE:BALY)

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

Institutional and Insider Ownership

1.7% of Motorsport Games shares are held by institutional investors. Comparatively, 70.4% of Bally’s shares are held by institutional investors. 17.3% of Motorsport Games shares are held by company insiders. Comparatively, 74.9% of Bally’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Motorsport Games and Bally’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	1	0	0	0	1.00
Bally’s	1	5	0	0	1.83

Bally’s has a consensus price target of $11.50, indicating a potential downside of 39.67%. Given Bally’s’ stronger consensus rating and higher probable upside, analysts clearly believe Bally’s is more favorable than Motorsport Games.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	30.12%	94.30%	35.66%
Bally’s	-23.55%	-72.98%	-4.55%

Risk & Volatility

Motorsport Games has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Bally’s has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Valuation & Earnings

This table compares Motorsport Games and Bally’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$8.69 million	1.61	-$2.75 million	$0.26	9.31
Bally’s	$2.45 billion	0.38	-$567.75 million	($5.17)	-3.69

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

Summary

Motorsport Games beats Bally’s on 7 of the 13 factors compared between the two stocks.

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.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.