Head-To-Head Contrast: MarketWise (NASDAQ:MKTW) versus Inspired Entertainment (NASDAQ:INSE)

MarketWise (NASDAQ:MKTWGet Free Report) and Inspired Entertainment (NASDAQ:INSEGet Free Report) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MarketWise and Inspired Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MarketWise 0 1 2 0 2.67
Inspired Entertainment 0 1 3 0 2.75

MarketWise presently has a consensus target price of $3.50, suggesting a potential upside of 169.23%. Inspired Entertainment has a consensus target price of $16.00, suggesting a potential upside of 75.63%. Given MarketWise’s higher probable upside, equities research analysts clearly believe MarketWise is more favorable than Inspired Entertainment.

Profitability

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

Net Margins Return on Equity Return on Assets
MarketWise 0.46% -0.74% 0.48%
Inspired Entertainment 0.56% -9.10% 2.17%

Valuation and Earnings

This table compares MarketWise and Inspired Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MarketWise $448.18 million 0.96 $1.78 million $0.04 32.51
Inspired Entertainment $323.00 million 0.75 $7.60 million $0.06 151.86

Inspired Entertainment has lower revenue, but higher earnings than MarketWise. MarketWise is trading at a lower price-to-earnings ratio than Inspired Entertainment, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

23.0% of MarketWise shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 28.6% of MarketWise shares are held by company insiders. Comparatively, 12.9% of Inspired Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

MarketWise has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Summary

Inspired Entertainment beats MarketWise on 9 of the 14 factors compared between the two stocks.

About MarketWise

(Get Free Report)

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.

About Inspired Entertainment

(Get Free Report)

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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