Analyzing Inspired Entertainment (INSE) and Its Rivals

Inspired Entertainment (NASDAQ:INSE) is one of 383 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare Inspired Entertainment to similar businesses based on the strength of its risk, profitability, analyst recommendations, institutional ownership, valuation, dividends and earnings.

Volatility and Risk

Inspired Entertainment has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Inspired Entertainment’s competitors have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

77.4% of Inspired Entertainment shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 14.4% of Inspired Entertainment shares are owned by company insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Inspired Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspired Entertainment	-2.96%	-30.08%	-0.36%
Inspired Entertainment Competitors	8.51%	-42.06%	2.05%

Analyst Recommendations

This is a summary of recent ratings and price targets for Inspired Entertainment and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspired Entertainment	1	2	4	0	2.43
Inspired Entertainment Competitors	3832	17319	25640	908	2.50

Inspired Entertainment presently has a consensus price target of $9.81, suggesting a potential upside of 123.52%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 53.51%. Given Inspired Entertainment’s higher probable upside, research analysts clearly believe Inspired Entertainment is more favorable than its competitors.

Valuation and Earnings

This table compares Inspired Entertainment and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Inspired Entertainment	$304.10 million	-$17.00 million	-16.88
Inspired Entertainment Competitors	$3.42 billion	$250.18 million	-161.20

Inspired Entertainment’s competitors have higher revenue and earnings than Inspired Entertainment. Inspired Entertainment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Inspired Entertainment competitors beat Inspired Entertainment on 8 of the 13 factors compared.

About Inspired Entertainment

Inspired Entertainment is a gaming technology company that develops and supplies products and services to operators in regulated gaming, betting and leisure markets. Its offerings include gaming machines and content for land-based venues, as well as digital games for online platforms. The company also provides virtual sports products, which use computer-generated events such as football and horse racing for betting, and systems that support the delivery and management of gaming content. Its leisure business supplies amusement and gaming products to venues such as pubs and other out-of-home entertainment locations.