Light & Wonder (NASDAQ:LNW – Get Free Report) and DouYu International (NASDAQ:DOYU – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Earnings & Valuation
This table compares Light & Wonder and DouYu International”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Light & Wonder | $3.19 billion | 2.34 | $336.00 million | $3.96 | 22.40 |
| DouYu International | $585.10 million | 0.40 | -$42.03 million | ($0.91) | -8.49 |
Analyst Recommendations
This is a breakdown of recent recommendations for Light & Wonder and DouYu International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Light & Wonder | 1 | 4 | 6 | 2 | 2.69 |
| DouYu International | 0 | 3 | 0 | 0 | 2.00 |
Light & Wonder presently has a consensus target price of $104.11, suggesting a potential upside of 17.39%. DouYu International has a consensus target price of $7.00, suggesting a potential downside of 9.44%. Given Light & Wonder’s stronger consensus rating and higher possible upside, equities analysts plainly believe Light & Wonder is more favorable than DouYu International.
Profitability
This table compares Light & Wonder and DouYu International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Light & Wonder | 10.89% | 71.17% | 8.73% |
| DouYu International | -4.73% | -3.32% | -2.39% |
Institutional & Insider Ownership
88.1% of Light & Wonder shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 2.2% of Light & Wonder shares are held by insiders. Comparatively, 17.3% of DouYu International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Light & Wonder has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Summary
Light & Wonder beats DouYu International on 14 of the 15 factors compared between the two stocks.
About Light & Wonder
Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.
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.
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