Corsair Gaming (NASDAQ:CRSR – Get Free Report) and Galaxy Gaming (OTCMKTS:GLXZ – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
25.7% of Corsair Gaming shares are held by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are held by institutional investors. 58.4% of Corsair Gaming shares are held by insiders. Comparatively, 21.9% of Galaxy Gaming shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Corsair Gaming and Galaxy Gaming”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Corsair Gaming | $1.32 billion | 0.70 | -$99.18 million | ($0.81) | -10.73 |
| Galaxy Gaming | $31.74 million | 2.26 | -$2.63 million | ($0.16) | -17.69 |
Galaxy Gaming has lower revenue, but higher earnings than Corsair Gaming. Galaxy Gaming is trading at a lower price-to-earnings ratio than Corsair Gaming, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Corsair Gaming and Galaxy Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Corsair Gaming | -6.00% | -3.12% | -1.54% |
| Galaxy Gaming | -13.60% | N/A | -12.08% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Corsair Gaming and Galaxy Gaming, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Corsair Gaming | 0 | 3 | 2 | 1 | 2.67 |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
Corsair Gaming presently has a consensus price target of $9.83, suggesting a potential upside of 13.16%. Given Corsair Gaming’s stronger consensus rating and higher probable upside, research analysts clearly believe Corsair Gaming is more favorable than Galaxy Gaming.
Volatility and Risk
Corsair Gaming has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Summary
Corsair Gaming beats Galaxy Gaming on 11 of the 15 factors compared between the two stocks.
About Corsair Gaming
Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.
About Galaxy Gaming
Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.
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