Galaxy Gaming (OTCMKTS:GLXZ) and Bally’s (NYSE:BALY) Head to Head Survey

Galaxy Gaming (OTCMKTS:GLXZ) and Bally’s (NYSE:BALY) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Galaxy Gaming and Bally’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galaxy Gaming	4.81%	-7.57%	5.48%
Bally’s	-26.39%	-63.15%	-8.37%

Valuation & Earnings

This table compares Galaxy Gaming and Bally’s”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Gaming	$30.87 million	1.62	$1.48 million	$0.06	32.83
Bally’s	$2.66 billion	0.20	-$701.10 million	($5.46)	-1.95

Galaxy Gaming has higher earnings, but lower revenue than Bally’s. Bally’s is trading at a lower price-to-earnings ratio than Galaxy Gaming, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Galaxy Gaming has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Bally’s has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Galaxy Gaming and Bally’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Gaming	0	0	0	0	0.00
Bally’s	2	3	0	0	1.60

Bally’s has a consensus target price of $13.25, indicating a potential upside of 24.53%. Given Bally’s’ stronger consensus rating and higher possible upside, analysts plainly believe Bally’s is more favorable than Galaxy Gaming.

Insider & Institutional Ownership

0.4% of Galaxy Gaming shares are owned by institutional investors. Comparatively, 70.4% of Bally’s shares are owned by institutional investors. 21.9% of Galaxy Gaming shares are owned by company insiders. Comparatively, 74.9% of Bally’s shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Galaxy Gaming beats Bally’s on 7 of the 13 factors compared between the two stocks.

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.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.