Head-To-Head Contrast: NeoGames (NASDAQ:NGMS) & WOWI (OTCMKTS:WOWU)

NeoGames (NASDAQ:NGMSGet Rating) and WOWI (OTCMKTS:WOWUGet Rating) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

54.3% of NeoGames shares are owned by institutional investors. 41.0% of WOWI shares are owned 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for NeoGames and WOWI, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeoGames 0 0 2 0 3.00
WOWI 0 0 0 0 N/A

NeoGames currently has a consensus target price of $25.00, suggesting a potential upside of 104.08%. Given NeoGames’ higher possible upside, equities research analysts clearly believe NeoGames is more favorable than WOWI.

Profitability

This table compares NeoGames and WOWI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeoGames 9.22% 14.50% 7.79%
WOWI N/A N/A N/A

Earnings and Valuation

This table compares NeoGames and WOWI’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NeoGames $50.46 million 5.34 $4.65 million $0.17 72.06
WOWI N/A N/A N/A N/A N/A

NeoGames has higher revenue and earnings than WOWI.

Risk and Volatility

NeoGames has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500. Comparatively, WOWI has a beta of -42.59, meaning that its share price is 4,359% less volatile than the S&P 500.

Summary

NeoGames beats WOWI on 8 of the 9 factors compared between the two stocks.

About NeoGames (Get Rating)

NeoGames S.A. provides a suite of iLottery technology solutions worldwide. The company offers various technology platforms, a range of value-added services, and a game studio that provides a portfolio of draw based games and instant tickets through personal computers, smartphones, and handheld devices. It also develops and operates online lotteries and games that allows lottery operators to distribute lottery products through online sales channels using the company's technology. In addition, the company offers software development and platforms sub-licensing services; and regulation and compliance, payment processing, risk management, player relationship management, and player value optimization services. NeoGames S.A. was incorporated on 2014 and is headquartered in Tel Aviv, Israel.

About WOWI (Get Rating)

WOWI, Inc., an early-stage company, engages in the business of licensing technology and intellectual property to operators and businesses in the legal cannabis industry in the United States. The company also provides packaging and labeling, as well as equipment and real property leasing services to various companies. In addition, it offers a plethora of consulting services, including proper business structure and management services in the legal cannabis space serving cultivations, growers, extractors, and dispensaries that operate legally in states that has legal medicinal and/or recreational legislation. The company is headquartered in Centennial, Colorado.

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