Comparing DouYu International (NASDAQ:DOYU) and UbiSoft Entertainment (OTCMKTS:UBSFY)

DouYu International (NASDAQ:DOYU) and UbiSoft Entertainment (OTCMKTS:UBSFY) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for DouYu International and UbiSoft Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	0	3	0	0	2.00
UbiSoft Entertainment	1	3	0	1	2.20

DouYu International presently has a consensus target price of $7.00, indicating a potential downside of 6.91%. Given DouYu International’s higher possible upside, analysts plainly believe DouYu International is more favorable than UbiSoft Entertainment.

Volatility and Risk

DouYu International has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, UbiSoft Entertainment has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500.

Earnings & Valuation

This table compares DouYu International and UbiSoft Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$585.10 million	0.39	-$42.03 million	($0.91)	-8.26
UbiSoft Entertainment	$2.04 billion	0.73	-$170.71 million	N/A	N/A

DouYu International has higher earnings, but lower revenue than UbiSoft Entertainment.

Profitability

This table compares DouYu International and UbiSoft Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DouYu International	-4.73%	-3.32%	-2.39%
UbiSoft Entertainment	N/A	N/A	N/A

Institutional and Insider Ownership

17.9% of DouYu International shares are owned by institutional investors. Comparatively, 0.1% of UbiSoft Entertainment shares are owned by institutional investors. 17.3% of DouYu International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

UbiSoft Entertainment beats DouYu International on 7 of the 12 factors compared between the two stocks.

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.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.