Motorsport Games (NASDAQ:MSGM – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
Motorsport Games has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.
Earnings & Valuation
This table compares Motorsport Games and Allied Gaming & Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Motorsport Games | $8.69 million | 3.08 | -$2.75 million | $0.40 | 11.58 |
| Allied Gaming & Entertainment | $9.08 million | 1.26 | -$16.76 million | ($0.54) | -0.56 |
Motorsport Games has higher earnings, but lower revenue than Allied Gaming & Entertainment. Allied Gaming & 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 Allied Gaming & 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% |
| Allied Gaming & Entertainment | -280.09% | -19.56% | -11.82% |
Institutional and Insider Ownership
1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. 17.3% of Motorsport Games shares are owned by insiders. Comparatively, 34.6% of Allied Gaming & Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Motorsport Games and Allied Gaming & Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Motorsport Games | 0 | 1 | 0 | 0 | 2.00 |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
Summary
Motorsport Games beats Allied Gaming & Entertainment on 9 of the 12 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 Allied Gaming & Entertainment
Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.
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