Skillz (NYSE:FIRY – Get Free Report) and Gaia (NASDAQ:GAIA – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Institutional and Insider Ownership
19.4% of Skillz shares are held by institutional investors. Comparatively, 40.5% of Gaia shares are held by institutional investors. 59.4% of Skillz shares are held by insiders. Comparatively, 26.0% of Gaia shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Skillz and Gaia, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skillz | 1 | 0 | 1 | 0 | 2.00 |
| Gaia | 1 | 0 | 0 | 0 | 1.00 |
Risk & Volatility
Skillz has a beta of 4.65, meaning that its stock price is 365% more volatile than the S&P 500. Comparatively, Gaia has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Earnings and Valuation
This table compares Skillz and Gaia”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skillz | $104.50 million | 1.93 | -$70.41 million | ($4.42) | -2.75 |
| Gaia | $98.95 million | 0.32 | -$4.49 million | ($0.31) | -4.03 |
Gaia has lower revenue, but higher earnings than Skillz. Gaia is trading at a lower price-to-earnings ratio than Skillz, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Skillz and Gaia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skillz | -60.23% | -66.50% | -24.36% |
| Gaia | -8.23% | -7.85% | -5.13% |
About Skillz
Skillz operates a mobile gaming platform that enables players to compete in skill-based games, including through tournaments and head-to-head matches. The company provides the technology and services that game developers use to add competition, player engagement and monetization features to their mobile games. Founded in 2012 by Andrew Paradise and Casey Chafkin, Skillz has also expanded into mobile advertising through its acquisition of ad-tech company Aarki. Andrew Paradise has served as the company’s chief executive officer.
About Gaia
Gaia, Inc. is a digital media and subscription streaming company that provides programming focused on yoga, fitness, meditation, spirituality, personal growth and conscious living. Its platform is designed for viewers seeking wellness-oriented content, educational programming and alternative perspectives not typically offered by mainstream entertainment services. The company offers a library of on-demand videos, including original series, documentaries, interviews, classes and instructional programs.
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