Motorsport Games (NASDAQ:MSGM) vs. Century Casinos (NASDAQ:CNTY) Critical Comparison

Motorsport Games (NASDAQ:MSGM) and Century Casinos (NASDAQ:CNTY) 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, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Earnings and Valuation

This table compares Motorsport Games and Century Casinos”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$11.30 million	2.30	$6.93 million	$1.17	3.85
Century Casinos	$572.97 million	0.07	-$61.42 million	($1.94)	-0.71

Motorsport Games has higher earnings, but lower revenue than Century Casinos. Century Casinos is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 66.4% of Century Casinos shares are owned by institutional investors. 4.6% of Motorsport Games shares are owned by company insiders. Comparatively, 13.0% of Century Casinos shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Motorsport Games has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares Motorsport Games and Century Casinos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	45.70%	87.43%	56.50%
Century Casinos	-9.88%	-3,789.52%	-4.97%

Analyst Ratings

This is a breakdown of recent ratings for Motorsport Games and Century Casinos, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	0	2.00
Century Casinos	1	0	2	0	2.33

Century Casinos has a consensus price target of $3.00, suggesting a potential upside of 117.39%. Given Century Casinos’ stronger consensus rating and higher possible upside, analysts plainly believe Century Casinos is more favorable than Motorsport Games.

Summary

Motorsport Games beats Century Casinos on 8 of the 14 factors compared between the two stocks.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.

About Century Casinos

Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.