Reviewing Sharplink Gaming (NASDAQ:SBET) & Bragg Gaming Group (NASDAQ:BRAG)

Bragg Gaming Group (NASDAQ:BRAG) and Sharplink Gaming (NASDAQ:SBET) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Bragg Gaming Group and Sharplink Gaming”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bragg Gaming Group	$110.38 million	0.45	-$5.57 million	($0.34)	-5.85
Sharplink Gaming	$3.66 million	481.51	$10.10 million	($2.39)	-3.75

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

Volatility and Risk

Bragg Gaming Group has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Sharplink Gaming has a beta of 10.98, suggesting that its share price is 998% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bragg Gaming Group	-7.08%	-11.05%	-7.32%
Sharplink Gaming	-7.86%	-2.26%	-2.26%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Bragg Gaming Group and Sharplink Gaming, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bragg Gaming Group	1	4	1	0	2.00
Sharplink Gaming	1	1	4	0	2.50

Bragg Gaming Group presently has a consensus target price of $7.00, indicating a potential upside of 251.76%. Sharplink Gaming has a consensus target price of $38.20, indicating a potential upside of 326.34%. Given Sharplink Gaming’s stronger consensus rating and higher probable upside, analysts plainly believe Sharplink Gaming is more favorable than Bragg Gaming Group.

Insider and Institutional Ownership

4.0% of Bragg Gaming Group shares are held by institutional investors. Comparatively, 13.8% of Sharplink Gaming shares are held by institutional investors. 26.4% of Bragg Gaming Group shares are held by insiders. Comparatively, 3.4% of Sharplink Gaming shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Sharplink Gaming beats Bragg Gaming Group on 10 of the 14 factors compared between the two stocks.

About Bragg Gaming Group

Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.

About Sharplink Gaming

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.