Contrasting Motorsport Games (NASDAQ:MSGM) and HUYA (NYSE:HUYA)

Motorsport Games (NASDAQ:MSGM) and HUYA (NYSE:HUYA) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Motorsport Games and HUYA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	1	3.00
HUYA	1	1	1	1	2.50

HUYA has a consensus target price of $3.45, suggesting a potential upside of 50.98%. Given HUYA’s higher possible upside, analysts plainly believe HUYA is more favorable than Motorsport Games.

Institutional and Insider Ownership

1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 4.6% of Motorsport Games shares are owned by company insiders. Comparatively, 1.2% of HUYA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Motorsport Games and HUYA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$11.30 million	1.79	$6.93 million	$0.43	11.30
HUYA	$929.83 million	0.56	-$16.10 million	($0.06)	-38.08

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

Profitability

This table compares Motorsport Games and HUYA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	16.15%	41.13%	24.51%
HUYA	-1.59%	0.20%	0.14%

Risk and Volatility

Motorsport Games has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, HUYA has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Summary

Motorsport Games beats HUYA on 10 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 HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.