GameSquare (NASDAQ:GAME – Get Free Report) and Galaxy Gaming (OTCMKTS:GLXZ – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Profitability
This table compares GameSquare and Galaxy Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GameSquare | -87.56% | -42.48% | -15.43% |
| Galaxy Gaming | 15.85% | -26.72% | 18.13% |
Institutional and Insider Ownership
64.3% of GameSquare shares are owned by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are owned by institutional investors. 5.2% of GameSquare shares are owned by company insiders. Comparatively, 21.9% of Galaxy Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameSquare | 1 | 1 | 1 | 0 | 2.00 |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
Risk and Volatility
GameSquare has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.
Valuation & Earnings
This table compares GameSquare and Galaxy Gaming”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GameSquare | $45.00 million | 0.89 | -$40.10 million | ($0.59) | -0.72 |
| Galaxy Gaming | $30.87 million | 1.49 | $1.48 million | $0.19 | 9.58 |
Galaxy Gaming has lower revenue, but higher earnings than GameSquare. GameSquare is trading at a lower price-to-earnings ratio than Galaxy Gaming, indicating that it is currently the more affordable of the two stocks.
Summary
Galaxy Gaming beats GameSquare on 8 of the 13 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 Galaxy Gaming
Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.
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