Contrasting Motorsport Games (NASDAQ:MSGM) and Super League Enterprise (NASDAQ:SLE)

Super League Enterprise (NASDAQ:SLE) and Motorsport Games (NASDAQ:MSGM) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Super League Enterprise and Motorsport Games’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Super League Enterprise	-130.97%	N/A	-156.77%
Motorsport Games	34.24%	86.01%	42.20%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Super League Enterprise and Motorsport Games, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super League Enterprise	1	0	1	0	2.00
Motorsport Games	0	1	0	0	2.00

Insider and Institutional Ownership

2.1% of Super League Enterprise shares are held by institutional investors. Comparatively, 1.7% of Motorsport Games shares are held by institutional investors. 0.8% of Super League Enterprise shares are held by company insiders. Comparatively, 17.3% of Motorsport Games shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Super League Enterprise 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
Super League Enterprise	$11.57 million	0.33	-$16.64 million	($418.01)	-0.01
Motorsport Games	$8.69 million	2.33	-$2.75 million	$0.40	8.75

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

Risk & Volatility

Super League Enterprise has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Summary

Motorsport Games beats Super League Enterprise on 8 of the 12 factors compared between the two stocks.

About Super League Enterprise

Super League Enterprise, Inc. creates and publishes content and media solutions across immersive platforms in the United States and internationally. The company offers access to audiences who gather in immersive digital spaces to socialize, play, explore, collaborate, shop, learn, and create. It also provides a range of development, distribution, monetization, and optimization capabilities designed to engage users through dynamic and energized programs. Its proprietary cloud-based platform offers dynamic media technology; metaverse game experience and tournament technology; and fully remote production and livestream broadcast technology. In addition, the company operates Minecraft server world for more casual players on consoles and tablets. Further, it sells on-platform media and analytics products, and influencer marketing campaign sales to third-party brands and agencies; game development and custom game experiences within its owned and affiliate game worlds; and production, curation and distribution of entertainment content for its network of digital channels and media and entertainment partner channels. The company was formerly known as Super League Gaming, Inc. and changed its name to Super League Enterprise, Inc. in September 2023. Super League Enterprise, Inc. was founded in 2015 and is headquartered in Santa Monica, California.

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.