Sharplink Gaming (NASDAQ:SBET – Get Free Report) and PENN Entertainment (NASDAQ:PENN – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Profitability
This table compares Sharplink Gaming and PENN Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sharplink Gaming | -2,618.38% | -50.72% | -50.55% |
| PENN Entertainment | -13.55% | 0.42% | 0.07% |
Institutional & Insider Ownership
13.8% of Sharplink Gaming shares are owned by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are owned by institutional investors. 3.6% of Sharplink Gaming shares are owned by insiders. Comparatively, 2.7% of PENN Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sharplink Gaming | $28.06 million | 50.34 | -$734.59 million | ($2.39) | -3.00 |
| PENN Entertainment | $6.96 billion | 0.34 | -$843.10 million | ($6.72) | -2.66 |
Sharplink Gaming has higher earnings, but lower revenue than PENN Entertainment. Sharplink Gaming is trading at a lower price-to-earnings ratio than PENN Entertainment, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Sharplink Gaming has a beta of 11.31, suggesting that its share price is 1,031% more volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Sharplink Gaming and PENN Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sharplink Gaming | 1 | 1 | 7 | 1 | 2.80 |
| PENN Entertainment | 1 | 6 | 8 | 0 | 2.47 |
Sharplink Gaming presently has a consensus price target of $22.11, suggesting a potential upside of 208.60%. PENN Entertainment has a consensus price target of $20.21, suggesting a potential upside of 12.94%. Given Sharplink Gaming’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sharplink Gaming is more favorable than PENN Entertainment.
Summary
Sharplink Gaming beats PENN Entertainment on 8 of the 15 factors compared between the two stocks.
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.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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