Financial Comparison: Sumo Group (OTCMKTS:SUMGF) versus Skillz (NYSE:SKLZ)

Sumo Group (OTCMKTS:SUMGF) and Skillz (NYSE:SKLZ) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares Sumo Group and Skillz’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumo Group	N/A	N/A	N/A	N/A	N/A
Skillz	$118.06 million	1.06	-$106.69 million	($5.11)	-1.14

Sumo Group has higher earnings, but lower revenue than Skillz.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sumo Group and Skillz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumo Group	0	0	0	0	N/A
Skillz	0	2	2	0	2.50

Skillz has a consensus price target of $10.67, suggesting a potential upside of 82.96%. Given Skillz’s higher probable upside, analysts plainly believe Skillz is more favorable than Sumo Group.

Profitability

This table compares Sumo Group and Skillz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumo Group	N/A	N/A	N/A
Skillz	-47.40%	-40.12%	-21.34%

Institutional & Insider Ownership

19.4% of Skillz shares are held by institutional investors. 22.7% of Skillz shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Skillz beats Sumo Group on 5 of the 8 factors compared between the two stocks.

About Sumo Group

Sumo Group Plc, together with its subsidiaries, provides end-to-end creative development and co-development services to the video games and entertainment industries in the United Kingdom and rest of Europe, the United States, India, and Canada. It offers visual concept design, pre-production, development, user-interface design, and post-release support services. The company develops games across a range of console platforms, PC, handheld, and mobile devices. It also provides financing services. Sumo Group Plc was founded in 2003 and is based in Sheffield, the United Kingdom.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.