Motorsport Games (NASDAQ:MSGM – Get Free Report) and Galaxy Gaming (OTCMKTS:GLXZ – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Analyst Recommendations
This is a breakdown of current ratings for Motorsport Games and Galaxy Gaming, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Motorsport Games | 1 | 0 | 0 | 0 | 1.00 |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
Volatility and Risk
Motorsport Games has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Motorsport Games | 30.12% | 94.30% | 35.66% |
| Galaxy Gaming | -13.60% | N/A | -12.08% |
Institutional & Insider Ownership
1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are owned by institutional investors. 17.3% of Motorsport Games shares are owned by company insiders. Comparatively, 21.9% of Galaxy Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Motorsport Games and Galaxy Gaming”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Motorsport Games | $8.69 million | 1.54 | -$2.75 million | $0.26 | 8.88 |
| Galaxy Gaming | $31.74 million | 2.23 | -$2.63 million | ($0.16) | -17.50 |
Galaxy Gaming has higher revenue and earnings than Motorsport Games. Galaxy Gaming is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.
Summary
Motorsport Games beats Galaxy Gaming on 8 of the 12 factors compared between the two stocks.
About Motorsport Games
Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.
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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