Universal Entertainment (OTCMKTS:UETMF) & Brera (NASDAQ:BREA) Critical Review

Universal Entertainment (OTCMKTS:UETMF) and Brera (NASDAQ:BREA) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Universal Entertainment and Brera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Entertainment	0	0	0	0	0.00
Brera	1	0	0	0	1.00

Profitability

This table compares Universal Entertainment and Brera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Entertainment	-5.30%	14.42%	8.49%
Brera	N/A	N/A	N/A

Institutional & Insider Ownership

68.3% of Brera shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Universal Entertainment has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Brera has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500.

Earnings & Valuation

This table compares Universal Entertainment and Brera”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Entertainment	$835.53 million	0.61	-$102.75 million	($0.59)	-11.11
Brera	$2.89 million	0.75	-$4.79 million	N/A	N/A

Brera has lower revenue, but higher earnings than Universal Entertainment.

Summary

Brera beats Universal Entertainment on 6 of the 9 factors compared between the two stocks.

About Universal Entertainment

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

About Brera

Brera Holdings PLC develops, manages, and operates football clubs. The company operates a football club under the Brera FC brand name. Brera Holdings PLC was founded in 2000 and is based in Dublin, Ireland.