Financial Survey: Lendway (NASDAQ:LDWY) vs. Gambling.com Group (NASDAQ:GAMB)

Lendway (NASDAQ:LDWY) and Gambling.com Group (NASDAQ:GAMB) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

6.6% of Lendway shares are held by institutional investors. Comparatively, 72.3% of Gambling.com Group shares are held by institutional investors. 15.4% of Lendway shares are held by insiders. Comparatively, 57.9% of Gambling.com Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lendway and Gambling.com Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lendway	$48.58 million	0.14	-$5.74 million	($2.44)	-1.52
Gambling.com Group	$127.18 million	1.59	$30.68 million	$0.05	113.30

Gambling.com Group has higher revenue and earnings than Lendway. Lendway is trading at a lower price-to-earnings ratio than Gambling.com Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Lendway and Gambling.com Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendway	1	0	0	0	1.00
Gambling.com Group	1	3	6	0	2.50

Gambling.com Group has a consensus price target of $13.00, indicating a potential upside of 129.48%. Given Gambling.com Group’s stronger consensus rating and higher possible upside, analysts clearly believe Gambling.com Group is more favorable than Lendway.

Profitability

This table compares Lendway and Gambling.com Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lendway	-5.30%	-20.31%	-2.66%
Gambling.com Group	1.23%	37.78%	18.71%

Risk and Volatility

Lendway has a beta of 2.61, suggesting that its share price is 161% more volatile than the S&P 500. Comparatively, Gambling.com Group has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Summary

Gambling.com Group beats Lendway on 13 of the 14 factors compared between the two stocks.

About Lendway

Lendway, Inc. operates as a specialty agricultural and finance company focusing on making and managing its agricultural investments in the United States and internationally. It owns and operates FarmlandCredit.com, a non-bank lending business that seeks to purchase existing loans and/or originate and fund new loans domestically. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in August 2023. The company was incorporated in 1990 and is headquartered in Minneapolis, Minnesota.

About Gambling.com Group

Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.