Financial Review: Corsair Gaming (NASDAQ:CRSR) versus Simplicity Esports and Gaming (OTCMKTS:WINR)

Simplicity Esports and Gaming (OTCMKTS:WINR) and Corsair Gaming (NASDAQ:CRSR) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Analyst Ratings

This is a summary of current ratings for Simplicity Esports and Gaming and Corsair Gaming, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simplicity Esports and Gaming	0	0	0	0	0.00
Corsair Gaming	1	3	4	0	2.38

Corsair Gaming has a consensus price target of $9.07, suggesting a potential upside of 46.20%. Given Corsair Gaming’s stronger consensus rating and higher possible upside, analysts plainly believe Corsair Gaming is more favorable than Simplicity Esports and Gaming.

Insider & Institutional Ownership

25.7% of Corsair Gaming shares are owned by institutional investors. 15.4% of Simplicity Esports and Gaming shares are owned by insiders. Comparatively, 58.4% of Corsair Gaming shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Simplicity Esports and Gaming and Corsair Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
Corsair Gaming	-2.46%	3.37%	1.66%

Valuation & Earnings

This table compares Simplicity Esports and Gaming and Corsair Gaming”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	N/A	($0.04)	0.00
Corsair Gaming	$1.32 billion	0.50	-$99.18 million	($0.34)	-18.25

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

Volatility and Risk

Simplicity Esports and Gaming has a beta of -0.88, meaning that its stock price is 188% less volatile than the S&P 500. Comparatively, Corsair Gaming has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Summary

Corsair Gaming beats Simplicity Esports and Gaming on 9 of the 11 factors compared between the two stocks.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.

About Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.