Head-To-Head Review: NeoGames (NGMS) versus The Competition

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 related businesses based on the strength of its valuation, analyst recommendations, risk, profitability, dividends, earnings and institutional ownership.

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% 1.17% 170.84%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeoGames 0 0 2 0 3.00
NeoGames Competitors 73 267 377 10 2.45

NeoGames currently has a consensus price target of $25.00, suggesting a potential upside of 106.95%. As a group, “Amusement & recreation services” companies have a potential upside of 69.14%. Given NeoGames’ stronger consensus rating and higher probable upside, equities research analysts plainly believe NeoGames is more favorable than its rivals.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
NeoGames $50.46 million $4.65 million -1,208.00
NeoGames Competitors $914.79 million -$75.39 million 54.73

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.

Insider & Institutional Ownership

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

Risk and Volatility

NeoGames has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, NeoGames’ rivals have a beta of -0.50, meaning that their average share price is 150% less volatile than the S&P 500.

Summary

NeoGames beats its rivals on 7 of the 12 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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