Comparing Bally’s (NYSE:BALY) and GameSquare (NASDAQ:GAME)

Bally’s (NYSE:BALY) and GameSquare (NASDAQ:GAME) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

70.4% of Bally’s shares are held by institutional investors. Comparatively, 64.3% of GameSquare shares are held by institutional investors. 69.3% of Bally’s shares are held by company insiders. Comparatively, 5.1% of GameSquare shares are held 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.

Profitability

This table compares Bally’s and GameSquare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-26.39%	-63.15%	-8.37%
GameSquare	-60.09%	-54.32%	-19.19%

Valuation and Earnings

This table compares Bally’s and GameSquare”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.66 billion	0.24	-$701.10 million	($5.46)	-2.43
GameSquare	$45.00 million	1.17	-$40.10 million	($0.55)	-1.00

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Bally’s and GameSquare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	2	3	0	0	1.60
GameSquare	2	0	0	0	1.00

Bally’s currently has a consensus target price of $13.25, suggesting a potential downside of 0.12%. Given Bally’s’ stronger consensus rating and higher probable upside, analysts plainly believe Bally’s is more favorable than GameSquare.

Volatility & Risk

Bally’s has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, GameSquare has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Summary

Bally’s beats GameSquare on 8 of the 13 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

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.