Comparing Swvl (NASDAQ:SWVL) and Inspired Entertainment (NASDAQ:INSE)

Inspired Entertainment (NASDAQ:INSE) and Swvl (NASDAQ:SWVL) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Risk & Volatility

Inspired Entertainment has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Swvl has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Earnings and Valuation

This table compares Inspired Entertainment and Swvl”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspired Entertainment	$304.10 million	0.61	-$17.00 million	($0.59)	-11.64
Swvl	$17.21 million	0.81	-$10.34 million	N/A	N/A

Swvl has lower revenue, but higher earnings than Inspired Entertainment.

Institutional and Insider Ownership

77.4% of Inspired Entertainment shares are held by institutional investors. Comparatively, 34.0% of Swvl shares are held by institutional investors. 13.1% of Inspired Entertainment shares are held by insiders. Comparatively, 29.9% of Swvl shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inspired Entertainment	-5.59%	-1,176.67%	-0.53%
Swvl	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Inspired Entertainment and Swvl, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspired Entertainment	2	1	4	1	2.50
Swvl	1	0	0	0	1.00

Inspired Entertainment currently has a consensus target price of $12.83, indicating a potential upside of 86.80%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Inspired Entertainment is more favorable than Swvl.

Summary

Inspired Entertainment beats Swvl on 7 of the 13 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 Swvl

Swvl Holdings Corp. provides mass transit ridesharing services. It offers B2C Swvl Retail, which provides riders with a network of minibuses and other vehicles running on fixed or semi-fixed routes within cities; Swvl Travel that allows riders to book rides on long-distance intercity routes on vehicle available through the Swvl platform or through third-party services; and Swvl Business, a transport as a service enterprise product for businesses, schools, municipal transit agencies, and other customers. Swvl Holdings Corp. was founded in 2017 and is headquartered in Dubai, the United Arab Emirates.