Cannabix Technologies (OTCMKTS:BLOZF – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Institutional & Insider Ownership
77.4% of Inspired Entertainment shares are owned by institutional investors. 13.1% of Inspired Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Cannabix Technologies and Inspired Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cannabix Technologies | N/A | N/A | -$3.36 million | ($0.02) | -21.75 |
| Inspired Entertainment | $297.10 million | 0.81 | $64.80 million | $1.99 | 4.49 |
Inspired Entertainment has higher revenue and earnings than Cannabix Technologies. Cannabix Technologies is trading at a lower price-to-earnings ratio than Inspired Entertainment, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cannabix Technologies and Inspired Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cannabix Technologies | N/A | -241.16% | -215.82% |
| Inspired Entertainment | 18.78% | -1,176.67% | 15.10% |
Analyst Recommendations
This is a breakdown of recent ratings for Cannabix Technologies and Inspired Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cannabix Technologies | 0 | 0 | 0 | 0 | 0.00 |
| Inspired Entertainment | 0 | 3 | 4 | 1 | 2.75 |
Inspired Entertainment has a consensus price target of $14.00, suggesting a potential upside of 56.77%. Given Inspired Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Inspired Entertainment is more favorable than Cannabix Technologies.
Volatility and Risk
Cannabix Technologies has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Summary
Inspired Entertainment beats Cannabix Technologies on 13 of the 14 factors compared between the two stocks.
About Cannabix Technologies
Cannabix Technologies Inc., a technology company, develops marijuana breathalyzer for employers, law enforcement, workplaces, and laboratories in the United States. It develops tetrahydrocannabinol breath analyzers, a point of care breath testing tool for the rapid detection of recent cannabis use; MS breath sampler; and contactless alcohol breathalyzer, as well as breath collection units. The company was formerly known as West Point Resources Inc. and changed its name to Cannabix Technologies Inc. in August 2014. Cannabix Technologies Inc. was incorporated in 2011 and is based in Burnaby, Canada.
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.
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