Critical Analysis: DouYu International (NASDAQ:DOYU) vs. SJM (OTCMKTS:SJMHF)

SJM (OTCMKTS:SJMHF) and DouYu International (NASDAQ:DOYU) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

17.9% of DouYu International shares are held by institutional investors. 17.3% of DouYu International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares SJM and DouYu International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SJM	$3.69 billion	0.35	$410,000.00	N/A	N/A
DouYu International	$546.09 million	0.26	-$4.16 million	$0.36	12.86

SJM has higher revenue and earnings than DouYu International.

Risk & Volatility

SJM has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for SJM and DouYu International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SJM	0	2	0	0	2.00
DouYu International	1	1	0	0	1.50

DouYu International has a consensus target price of $5.20, suggesting a potential upside of 12.31%. Given DouYu International’s higher probable upside, analysts clearly believe DouYu International is more favorable than SJM.

Profitability

This table compares SJM and DouYu International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SJM	N/A	N/A	N/A
DouYu International	2.11%	4.60%	2.94%

Summary

DouYu International beats SJM on 7 of the 11 factors compared between the two stocks.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.