Comparing GungHo Online Entertainment (OTCMKTS:GUNGF) & GameSquare (NASDAQ:GAME)

GameSquare (NASDAQ:GAME) and GungHo Online Entertainment (OTCMKTS:GUNGF) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares GameSquare and GungHo Online Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$96.20 million	0.30	-$64.99 million	($1.67)	-0.44
GungHo Online Entertainment	N/A	N/A	N/A	$53.82	0.32

GungHo Online Entertainment has lower revenue, but higher earnings than GameSquare. GameSquare is trading at a lower price-to-earnings ratio than GungHo Online Entertainment, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

64.3% of GameSquare shares are owned by institutional investors. Comparatively, 2.6% of GungHo Online Entertainment shares are owned by institutional investors. 11.6% of GameSquare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for GameSquare and GungHo Online Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameSquare	0	0	3	1	3.25
GungHo Online Entertainment	0	0	0	0	0.00

GameSquare currently has a consensus price target of $3.67, suggesting a potential upside of 402.21%. Given GameSquare’s stronger consensus rating and higher probable upside, equities analysts clearly believe GameSquare is more favorable than GungHo Online Entertainment.

Profitability

This table compares GameSquare and GungHo Online Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GameSquare	N/A	N/A	N/A
GungHo Online Entertainment	N/A	N/A	N/A

Dividends

GameSquare pays an annual dividend of $1.02 per share and has a dividend yield of 139.7%. GungHo Online Entertainment pays an annual dividend of $199.58 per share and has a dividend yield of 1,151.0%. GameSquare pays out -61.1% of its earnings in the form of a dividend. GungHo Online Entertainment pays out 370.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

GameSquare beats GungHo Online Entertainment on 8 of the 11 factors compared between the two stocks.

About GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.

About GungHo Online Entertainment

GungHo Online Entertainment, Inc. plans, develops, operates, and distributes smartphone applications, console games, and online computer games. The company was formerly known as ONSale Co., Ltd. and changed its name to GungHo Online Entertainment, Inc. in August 2002. GungHo Online Entertainment, Inc. was incorporated in 1998 and is based in Tokyo, Japan.