Magnite (NASDAQ:MGNI) vs. DouYu International (NASDAQ:DOYU) Head-To-Head Survey

DouYu International (NASDAQ:DOYU) and Magnite (NASDAQ:MGNI) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares DouYu International and Magnite”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$4.27 billion	0.05	$5.00 million	($1.32)	-5.32
Magnite	$668.17 million	2.08	-$159.18 million	$0.14	69.29

DouYu International has higher revenue and earnings than Magnite. DouYu International is trading at a lower price-to-earnings ratio than Magnite, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

DouYu International has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Magnite has a beta of 2.69, meaning that its stock price is 169% more volatile than the S&P 500.

Institutional & Insider Ownership

17.9% of DouYu International shares are held by institutional investors. Comparatively, 73.4% of Magnite shares are held by institutional investors. 17.3% of DouYu International shares are held by company insiders. Comparatively, 4.3% of Magnite shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares DouYu International and Magnite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DouYu International	-4.39%	-2.92%	-2.38%
Magnite	2.62%	4.64%	1.25%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DouYu International and Magnite, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	0	3	0	0	2.00
Magnite	0	1	12	0	2.92

DouYu International presently has a consensus target price of $12.75, indicating a potential upside of 81.62%. Magnite has a consensus target price of $19.27, indicating a potential upside of 98.65%. Given Magnite’s stronger consensus rating and higher probable upside, analysts clearly believe Magnite is more favorable than DouYu International.

Summary

Magnite beats DouYu International on 11 of the 14 factors compared between the two stocks.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.