Universal Entertainment (OTCMKTS:UETMF) versus Rush Street Interactive (NYSE:RSI) Financial Comparison

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Rush Street Interactive and Universal Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	3	9	0	2.75
Universal Entertainment	0	0	0	0	0.00

Rush Street Interactive presently has a consensus target price of $22.88, suggesting a potential upside of 10.37%. Given Rush Street Interactive’s stronger consensus rating and higher possible upside, analysts plainly believe Rush Street Interactive is more favorable than Universal Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.94%	17.95%	8.44%
Universal Entertainment	-181.64%	18.75%	10.29%

Valuation & Earnings

This table compares Rush Street Interactive and Universal Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$1.13 billion	4.24	$33.31 million	$0.28	74.02
Universal Entertainment	$821.59 million	0.62	-$1.55 billion	($19.42)	-0.34

Rush Street Interactive has higher revenue and earnings than Universal Entertainment. Universal Entertainment is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

24.8% of Rush Street Interactive shares are owned by institutional investors. 56.9% of Rush Street Interactive shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Rush Street Interactive has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Universal Entertainment has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Summary

Rush Street Interactive beats Universal Entertainment on 12 of the 14 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 Universal Entertainment

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.