Head to Head Analysis: NeoGames (NGMS) and Its Peers

NeoGames (NASDAQ:NGMSGet Rating) is one of 34 publicly-traded companies in the “Amusement & recreation services” industry, but how does it contrast to its rivals? We will compare NeoGames to similar businesses based on the strength of its risk, profitability, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares NeoGames and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeoGames -0.38% 9.83% 5.46%
NeoGames Competitors 2,290.89% -2.14% 170.84%

Insider and Institutional Ownership

42.4% of NeoGames shares are owned by institutional investors. Comparatively, 32.5% of shares of all “Amusement & recreation services” companies are owned by institutional investors. 31.6% of shares of all “Amusement & recreation services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NeoGames and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NeoGames $50.46 million $4.65 million -1,306.00
NeoGames Competitors $914.79 million -$75.39 million 48.63

NeoGames’ rivals have higher revenue, but lower earnings than NeoGames. NeoGames is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NeoGames and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeoGames 0 0 2 0 3.00
NeoGames Competitors 73 267 378 10 2.45

NeoGames currently has a consensus target price of $25.00, indicating a potential upside of 93.80%. As a group, “Amusement & recreation services” companies have a potential upside of 66.63%. Given NeoGames’ stronger consensus rating and higher possible upside, equities analysts plainly believe NeoGames is more favorable than its rivals.

Volatility and Risk

NeoGames has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, NeoGames’ rivals have a beta of -0.49, indicating that their average share price is 149% less volatile than the S&P 500.

Summary

NeoGames beats its rivals on 7 of the 13 factors compared.

About NeoGames (Get Rating)

NeoGames S.A. provides iLottery 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. The company was incorporated in 2014 and is headquartered in Tel Aviv, Israel.

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