Contrasting Motorsport Games (NASDAQ:MSGM) & UbiSoft Entertainment (OTCMKTS:UBSFY)

UbiSoft Entertainment (OTCMKTS:UBSFY) and Motorsport Games (NASDAQ:MSGM) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Volatility and Risk

UbiSoft Entertainment has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for UbiSoft Entertainment and Motorsport Games, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UbiSoft Entertainment	1	0	0	1	2.50
Motorsport Games	0	1	0	0	2.00

Institutional and Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UbiSoft Entertainment	N/A	N/A	N/A
Motorsport Games	34.24%	86.01%	42.20%

Valuation & Earnings

This table compares UbiSoft Entertainment and Motorsport Games”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UbiSoft Entertainment	$2.04 billion	0.30	-$170.71 million	N/A	N/A
Motorsport Games	$8.69 million	2.42	-$2.75 million	$0.40	9.10

Motorsport Games has lower revenue, but higher earnings than UbiSoft Entertainment.

Summary

Motorsport Games beats UbiSoft Entertainment on 8 of the 11 factors compared between the two stocks.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.

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.