GameSquare (NASDAQ:GAME) & Kingsoft (OTCMKTS:KSFTF) Head to Head Review

Kingsoft (OTCMKTS:KSFTF) and GameSquare (NASDAQ:GAME) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares Kingsoft and GameSquare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft	N/A	N/A	N/A	$0.56	8.12
GameSquare	$96.20 million	0.32	-$58.76 million	($1.51)	-0.52

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

Dividends

Kingsoft pays an annual dividend of $0.10 per share and has a dividend yield of 2.1%. GameSquare pays an annual dividend of $1.02 per share and has a dividend yield of 128.7%. Kingsoft pays out 17.2% of its earnings in the form of a dividend. GameSquare pays out -67.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. GameSquare is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for Kingsoft and GameSquare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft	0	0	0	0	0.00
GameSquare	0	0	3	1	3.25

GameSquare has a consensus target price of $3.67, indicating a potential upside of 362.79%. Given GameSquare’s stronger consensus rating and higher possible upside, analysts clearly believe GameSquare is more favorable than Kingsoft.

Profitability

This table compares Kingsoft and GameSquare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingsoft	N/A	N/A	N/A
GameSquare	N/A	N/A	N/A

Insider & Institutional Ownership

6.3% of Kingsoft shares are held by institutional investors. Comparatively, 64.3% of GameSquare shares are held by institutional investors. 11.6% of GameSquare shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

GameSquare beats Kingsoft on 9 of the 11 factors compared between the two stocks.

About Kingsoft

Kingsoft Corporation Limited engages in the entertainment and office software and services businesses in Mainland China, Hong Kong, and internationally. It operates in two segments, Office Software and Services, and Entertainment Software and Others. The company is involved in the research and development, operation, and distribution of games; the provision of PC games and mobile games services; and design, research and development, sale, and marketing of office software products and services of WPS Office. It also engages in the research and development of online games; marketing and operation of SMS, and wireless service of online games and application software; research and development, operation, and sale of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. Kingsoft Corporation Limited was founded in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.

About GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.