NMI (NASDAQ:NMIH – Get Free Report) and Sharplink Gaming (NASDAQ:SBET – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for NMI and Sharplink Gaming, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NMI | 0 | 2 | 5 | 0 | 2.71 |
| Sharplink Gaming | 1 | 0 | 9 | 0 | 2.80 |
NMI presently has a consensus target price of $48.43, indicating a potential upside of 18.05%. Sharplink Gaming has a consensus target price of $17.00, indicating a potential upside of 128.03%. Given Sharplink Gaming’s stronger consensus rating and higher probable upside, analysts plainly believe Sharplink Gaming is more favorable than NMI.
Profitability
This table compares NMI and Sharplink Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NMI | 54.10% | 15.13% | 10.21% |
| Sharplink Gaming | -3,406.29% | -33.40% | -33.30% |
Valuation & Earnings
This table compares NMI and Sharplink Gaming”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NMI | $706.44 million | 4.37 | $388.93 million | $5.08 | 8.08 |
| Sharplink Gaming | $50.20 million | 32.26 | -$734.59 million | $0.05 | 149.10 |
NMI has higher revenue and earnings than Sharplink Gaming. NMI is trading at a lower price-to-earnings ratio than Sharplink Gaming, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
NMI has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Sharplink Gaming has a beta of 10.6, suggesting that its stock price is 960% more volatile than the S&P 500.
Insider & Institutional Ownership
94.1% of NMI shares are held by institutional investors. Comparatively, 13.8% of Sharplink Gaming shares are held by institutional investors. 2.4% of NMI shares are held by company insiders. Comparatively, 3.6% of Sharplink Gaming shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
About NMI
NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.
About Sharplink Gaming
SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.
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