Financial Comparison: Capcom (OTCMKTS:CCOEY) vs. Rush Street Interactive (NYSE:RSI)

Rush Street Interactive (NYSE:RSI) and Capcom (OTCMKTS:CCOEY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

24.8% of Rush Street Interactive shares are owned by institutional investors. 56.9% of Rush Street Interactive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Rush Street Interactive and Capcom”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$1.13 billion	4.45	$33.31 million	$0.28	77.61
Capcom	$1.11 billion	10.73	$319.78 million	$0.51	21.97

Capcom has lower revenue, but higher earnings than Rush Street Interactive. Capcom is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rush Street Interactive and Capcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.94%	17.95%	8.44%
Capcom	32.82%	26.93%	21.51%

Volatility and Risk

Rush Street Interactive has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Capcom has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Rush Street Interactive and Capcom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	3	9	1	2.85
Capcom	0	1	1	0	2.50

Rush Street Interactive currently has a consensus target price of $22.88, suggesting a potential upside of 5.26%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, research analysts clearly believe Rush Street Interactive is more favorable than Capcom.

Summary

Rush Street Interactive beats Capcom on 9 of the 15 factors compared between the two stocks.

About Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.

About Capcom

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.