Contrasting Snail (NASDAQ:SNAL) and Universal Entertainment (OTCMKTS:UETMF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Snail	-15.14%	-12.69%	1.44%
Universal Entertainment	-5.30%	14.42%	8.49%

Analyst Ratings

This is a breakdown of current ratings for Snail and Universal Entertainment, as reported by MarketBeat.

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

Institutional & Insider Ownership

0.4% of Snail shares are held by institutional investors. 77.4% of Snail shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Snail and Universal Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snail	$84.47 million	0.36	$1.83 million	($0.68)	-1.19
Universal Entertainment	$835.53 million	0.61	-$102.75 million	($0.59)	-11.11

Snail has higher earnings, but lower revenue than Universal Entertainment. Universal Entertainment is trading at a lower price-to-earnings ratio than Snail, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Snail has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Universal Entertainment has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

About Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.

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.