Comparing Motorsport Games (NASDAQ:MSGM) and Flutter Entertainment (NYSE:FLUT)

Flutter Entertainment (NYSE:FLUT) and Motorsport Games (NASDAQ:MSGM) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Valuation & Earnings

This table compares Flutter Entertainment and Motorsport Games”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flutter Entertainment	$14.05 billion	2.76	$43.00 million	($1.30)	-170.33
Motorsport Games	$8.69 million	2.02	-$2.75 million	$0.40	7.60

Flutter Entertainment has higher revenue and earnings than Motorsport Games. Flutter Entertainment is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Flutter Entertainment and Motorsport Games, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	1	4	17	3	2.88
Motorsport Games	0	1	0	0	2.00

Flutter Entertainment presently has a consensus price target of $302.55, indicating a potential upside of 36.63%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Flutter Entertainment is more favorable than Motorsport Games.

Risk & Volatility

Flutter Entertainment has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Profitability

This table compares Flutter Entertainment and Motorsport Games’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-0.95%	14.42%	5.23%
Motorsport Games	34.24%	86.01%	42.20%

Insider & Institutional Ownership

1.7% of Motorsport Games shares are held by institutional investors. 0.1% of Flutter Entertainment shares are held by insiders. Comparatively, 17.3% of Motorsport Games shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Flutter Entertainment beats Motorsport Games on 8 of the 15 factors compared between the two stocks.

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.

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.