Head-To-Head Contrast: Simplicity Esports and Gaming (OTCMKTS:WINR) & DouYu International (NASDAQ:DOYU)

Simplicity Esports and Gaming (OTCMKTS:WINR) and DouYu International (NASDAQ:DOYU) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings for Simplicity Esports and Gaming and DouYu International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simplicity Esports and Gaming	0	0	0	0	0.00
DouYu International	0	3	0	0	2.00

DouYu International has a consensus price target of $7.00, suggesting a potential downside of 8.74%. Given Simplicity Esports and Gaming’s higher probable upside, equities analysts plainly believe Simplicity Esports and Gaming is more favorable than DouYu International.

Institutional & Insider Ownership

17.9% of DouYu International shares are owned by institutional investors. 15.4% of Simplicity Esports and Gaming shares are owned by company insiders. Comparatively, 17.3% of DouYu International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Simplicity Esports and Gaming and DouYu International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
DouYu International	-4.73%	-3.32%	-2.39%

Earnings & Valuation

This table compares Simplicity Esports and Gaming and DouYu International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	N/A	N/A	N/A
DouYu International	$4.20 billion	0.06	-$42.03 million	($0.91)	-8.43

Simplicity Esports and Gaming has higher earnings, but lower revenue than DouYu International.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.