SJM (OTCMKTS:SJMHF) vs. Rush Street Interactive (NYSE:RSI) Critical Review

Rush Street Interactive (NYSE:RSI) and SJM (OTCMKTS:SJMHF) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

24.8% of Rush Street Interactive shares are owned by institutional investors. 52.9% of Rush Street Interactive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rush Street Interactive and SJM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	3	9	1	2.85
SJM	0	2	0	0	2.00

Rush Street Interactive currently has a consensus price target of $33.11, suggesting a potential upside of 4.53%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Rush Street Interactive is more favorable than SJM.

Profitability

This table compares Rush Street Interactive and SJM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.98%	17.21%	8.00%
SJM	N/A	N/A	N/A

Risk & Volatility

Rush Street Interactive has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, SJM has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Earnings and Valuation

This table compares Rush Street Interactive and SJM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$1.13 billion	6.50	$33.31 million	$0.31	102.18
SJM	$3.69 billion	0.35	$410,000.00	N/A	N/A

Rush Street Interactive has higher earnings, but lower revenue than SJM.

Summary

Rush Street Interactive beats SJM on 12 of the 13 factors compared between the two stocks.

About Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.