Comparing Flutter Entertainment (NYSE:FLUT) and Motorsport Games (NASDAQ:MSGM)

Motorsport Games (NASDAQ:MSGM) and Flutter Entertainment (NYSE:FLUT) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

1.7% of Motorsport Games shares are owned by institutional investors. 17.3% of Motorsport Games shares are owned by company insiders. Comparatively, 0.1% of Flutter Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Motorsport Games and Flutter Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$8.69 million	2.02	-$2.75 million	$0.40	7.58
Flutter Entertainment	$14.05 billion	2.64	$43.00 million	($1.30)	-162.84

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

Profitability

This table compares Motorsport Games and Flutter Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	34.24%	86.01%	42.20%
Flutter Entertainment	-0.95%	14.42%	5.23%

Analyst Recommendations

This is a summary of current ratings for Motorsport Games and Flutter Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	0	2.00
Flutter Entertainment	1	4	17	3	2.88

Flutter Entertainment has a consensus target price of $302.55, indicating a potential upside of 42.92%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Flutter Entertainment is more favorable than Motorsport Games.

Volatility & Risk

Motorsport Games has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Summary

Flutter Entertainment beats Motorsport Games on 8 of the 15 factors compared between the two stocks.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.