Critical Survey: GameSquare (NASDAQ:GAME) and Brera (NASDAQ:BREA)

Brera (NASDAQ:BREA) and GameSquare (NASDAQ:GAME) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Earnings and Valuation

This table compares Brera and GameSquare”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brera	$2.89 million	6.48	-$4.79 million	N/A	N/A
GameSquare	$96.20 million	0.73	-$48.75 million	($1.21)	-0.59

Brera has higher earnings, but lower revenue than GameSquare.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Brera and GameSquare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brera	1	0	0	0	1.00
GameSquare	1	0	1	1	2.67

GameSquare has a consensus target price of $3.00, suggesting a potential upside of 322.12%. Given GameSquare’s stronger consensus rating and higher probable upside, analysts plainly believe GameSquare is more favorable than Brera.

Institutional & Insider Ownership

68.3% of Brera shares are owned by institutional investors. Comparatively, 64.3% of GameSquare shares are owned by institutional investors. 5.1% of GameSquare shares are owned by 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.

Risk and Volatility

Brera has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500. Comparatively, GameSquare has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares Brera and GameSquare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brera	N/A	N/A	N/A
GameSquare	-46.12%	-275.13%	-54.19%

Summary

Brera beats GameSquare on 7 of the 13 factors compared between the two stocks.

About Brera

Brera Holdings PLC develops, manages, and operates football clubs. The company operates a football club under the Brera FC brand name. Brera Holdings PLC was founded in 2000 and is based in Dublin, Ireland.

About GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.