Gannett (NYSE:GCI) versus Gambling.com Group (NASDAQ:GAMB) Head to Head Analysis

Gannett (NYSE:GCI) and Gambling.com Group (NASDAQ:GAMB) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gannett and Gambling.com Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gannett	0	1	1	0	2.50
Gambling.com Group	1	2	7	0	2.60

Gannett currently has a consensus price target of $6.00, indicating a potential upside of 45.99%. Gambling.com Group has a consensus price target of $16.00, indicating a potential upside of 95.60%. Given Gambling.com Group’s stronger consensus rating and higher probable upside, analysts clearly believe Gambling.com Group is more favorable than Gannett.

Institutional & Insider Ownership

76.7% of Gannett shares are held by institutional investors. Comparatively, 72.3% of Gambling.com Group shares are held by institutional investors. 4.2% of Gannett shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Gannett and Gambling.com Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gannett	4.84%	53.24%	5.14%
Gambling.com Group	9.66%	38.04%	20.75%

Risk and Volatility

Gannett has a beta of 2.55, suggesting that its stock price is 155% more volatile than the S&P 500. Comparatively, Gambling.com Group has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Earnings & Valuation

This table compares Gannett and Gambling.com Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gannett	$2.39 billion	0.25	-$26.35 million	$0.34	12.09
Gambling.com Group	$127.18 million	2.30	$30.68 million	$0.40	20.45

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

Summary

Gambling.com Group beats Gannett on 9 of the 14 factors compared between the two stocks.

About Gannett

Gannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates through three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions. The company's print offerings includes home delivery on a subscription basis; single copy; non-daily publications, such as shoppers and niche publications. It also provides digital-only subscription, including local media brands, USA TODAY NETWORK community events platform, magazines, sports, and games; and E-newspapers; and digital advertising and marketing services. In addition, the company offers digital news and media brands; daily and weekly newspapers; digital marketing solutions, such as online presence solutions, online advertising products, conversion software, and cloud-based software solutions; commercial printing and distribution services; and prints commercial materials, including flyers, business cards, and invitations. The company was formerly known as New Media Investment Group Inc. and changed its name to Gannett Co., Inc. in November 2019. Gannett Co., Inc. was incorporated in 2013 and is headquartered in McLean, Virginia.

About Gambling.com Group

Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.