Contrasting GameSquare (NASDAQ:GAME) and John Wiley & Sons (NYSE:WLYB)

GameSquare (NASDAQ:GAME) and John Wiley & Sons (NYSE:WLYB) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for GameSquare and John Wiley & Sons, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameSquare	1	1	1	0	2.00
John Wiley & Sons	0	1	0	0	2.00

Valuation & Earnings

This table compares GameSquare and John Wiley & Sons”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$45.00 million	0.75	-$40.10 million	($4.96)	-0.52
John Wiley & Sons	$1.68 billion	1.54	$221.62 million	$3.78	13.44

John Wiley & Sons has higher revenue and earnings than GameSquare. GameSquare is trading at a lower price-to-earnings ratio than John Wiley & Sons, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GameSquare has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, John Wiley & Sons has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

64.2% of GameSquare shares are held by institutional investors. Comparatively, 0.5% of John Wiley & Sons shares are held by institutional investors. 9.4% of GameSquare shares are held by insiders. Comparatively, 29.7% of John Wiley & Sons shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares GameSquare and John Wiley & Sons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GameSquare	-96.06%	7.97%	3.14%
John Wiley & Sons	11.90%	27.99%	8.16%

Summary

John Wiley & Sons beats GameSquare on 8 of the 12 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 John Wiley & Sons

John Wiley & Sons, Inc. engages in the provision of research and learning materials. It operates through the following segments: Research, Learning, and Held for Sale or Sold. The Research segment consists of research publishing and research solutions. The Learning segment includes academic and professional reporting lines and consists of publishing and related knowledge solutions. The Held for Sale or Sold segment offers businesses held-for-sale including Wiley Edge and CrossKnowledge, University Services and Tuition Manager, and Test Prep and Advancement Courses. The company was founded by Charles Wiley in 1807 and is headquartered in Hoboken, NJ.