Critical Review: Sharplink Gaming (NASDAQ:SBET) and NMI (NASDAQ:NMIH)

Sharplink Gaming (NASDAQ:SBET – Get Free Report) and NMI (NASDAQ:NMIH – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Profitability

This table compares Sharplink Gaming and NMI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sharplink Gaming -3,406.29% -33.40% -33.30%
NMI 54.10% 15.13% 10.21%

Analyst Ratings

This is a summary of recent ratings and target prices for Sharplink Gaming and NMI, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sharplink Gaming 1 0 9 0 2.80
NMI 0 2 5 0 2.71

Sharplink Gaming presently has a consensus price target of $17.00, indicating a potential upside of 122.80%. NMI has a consensus price target of $48.43, indicating a potential upside of 13.82%. Given Sharplink Gaming’s stronger consensus rating and higher possible upside, analysts plainly believe Sharplink Gaming is more favorable than NMI.

Earnings & Valuation

This table compares Sharplink Gaming and NMI”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sharplink Gaming $28.06 million 59.07 -$734.59 million $0.05 152.60
NMI $706.44 million 4.53 $388.93 million $5.08 8.38

NMI has higher revenue and earnings than Sharplink Gaming. NMI is trading at a lower price-to-earnings ratio than Sharplink Gaming, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

13.8% of Sharplink Gaming shares are held by institutional investors. Comparatively, 94.1% of NMI shares are held by institutional investors. 3.6% of Sharplink Gaming shares are held by company insiders. Comparatively, 2.4% of NMI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Sharplink Gaming has a beta of 10.6, meaning that its share price is 960% more volatile than the S&P 500. Comparatively, NMI has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

About Sharplink Gaming

(Get Free Report)

SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.

About NMI

(Get Free Report)

NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.

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