Comparing PLAYSTUDIOS (NASDAQ:MYPS) and Motorsport Games (NASDAQ:MSGM)

Motorsport Games (NASDAQ:MSGM) and PLAYSTUDIOS (NASDAQ:MYPS) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are owned by institutional investors. 4.6% of Motorsport Games shares are owned by insiders. Comparatively, 14.7% of PLAYSTUDIOS shares are owned by 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 PLAYSTUDIOS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$11.30 million	2.11	$6.93 million	$1.44	2.86
PLAYSTUDIOS	$235.10 million	0.23	-$28.64 million	($0.22)	-1.96

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

Profitability

This table compares Motorsport Games and PLAYSTUDIOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	61.31%	129.70%	76.36%
PLAYSTUDIOS	-12.18%	-10.75%	-8.43%

Analyst Ratings

This is a summary of current ratings and price targets for Motorsport Games and PLAYSTUDIOS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	0	2.00
PLAYSTUDIOS	1	2	1	0	2.00

PLAYSTUDIOS has a consensus target price of $1.25, suggesting a potential upside of 190.63%. Given PLAYSTUDIOS’s higher probable upside, analysts clearly believe PLAYSTUDIOS is more favorable than Motorsport Games.

Risk & Volatility

Motorsport Games has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Summary

Motorsport Games beats PLAYSTUDIOS on 8 of the 13 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 PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.