Reviewing BlackSky Technology (NYSE:BKSY) and Inspired Entertainment (NASDAQ:INSE)

Inspired Entertainment (NASDAQ:INSE) and BlackSky Technology (NYSE:BKSY) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Inspired Entertainment and BlackSky Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspired Entertainment	18.78%	-1,176.67%	15.10%
BlackSky Technology	-87.11%	-54.48%	-15.96%

Valuation & Earnings

This table compares Inspired Entertainment and BlackSky Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspired Entertainment	$297.10 million	0.84	$64.80 million	$1.99	4.63
BlackSky Technology	$102.09 million	8.71	-$57.22 million	($3.14)	-7.87

Inspired Entertainment has higher revenue and earnings than BlackSky Technology. BlackSky Technology is trading at a lower price-to-earnings ratio than Inspired Entertainment, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Inspired Entertainment has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, BlackSky Technology has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Inspired Entertainment and BlackSky Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspired Entertainment	0	3	4	1	2.75
BlackSky Technology	1	0	6	0	2.71

Inspired Entertainment presently has a consensus target price of $14.00, suggesting a potential upside of 51.84%. BlackSky Technology has a consensus target price of $28.00, suggesting a potential upside of 13.36%. Given Inspired Entertainment’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Inspired Entertainment is more favorable than BlackSky Technology.

Institutional and Insider Ownership

77.4% of Inspired Entertainment shares are owned by institutional investors. Comparatively, 27.2% of BlackSky Technology shares are owned by institutional investors. 12.9% of Inspired Entertainment shares are owned by insiders. Comparatively, 3.8% of BlackSky Technology shares are owned by 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.

Summary

Inspired Entertainment beats BlackSky Technology on 11 of the 15 factors compared between the two stocks.

About Inspired Entertainment

Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.

About BlackSky Technology

BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.