First Watch Restaurant Group (NASDAQ:FWRG) versus Bragg Gaming Group (NASDAQ:BRAG) Head-To-Head Review

Bragg Gaming Group (NASDAQ:BRAG) and First Watch Restaurant Group (NASDAQ:FWRG) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Bragg Gaming Group and First Watch Restaurant Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bragg Gaming Group	1	3	1	0	2.00
First Watch Restaurant Group	1	1	8	1	2.82

Bragg Gaming Group presently has a consensus price target of $5.00, indicating a potential upside of 262.32%. First Watch Restaurant Group has a consensus price target of $18.56, indicating a potential upside of 82.99%. Given Bragg Gaming Group’s higher probable upside, equities research analysts plainly believe Bragg Gaming Group is more favorable than First Watch Restaurant Group.

Risk & Volatility

Bragg Gaming Group has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, First Watch Restaurant Group has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Bragg Gaming Group and First Watch Restaurant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bragg Gaming Group	-7.48%	-12.70%	-8.22%
First Watch Restaurant Group	1.35%	2.85%	1.01%

Valuation & Earnings

This table compares Bragg Gaming Group and First Watch Restaurant Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bragg Gaming Group	$119.98 million	0.35	-$9.18 million	($0.36)	-3.83
First Watch Restaurant Group	$1.22 billion	0.51	$19.43 million	$0.29	34.97

First Watch Restaurant Group has higher revenue and earnings than Bragg Gaming Group. Bragg Gaming Group is trading at a lower price-to-earnings ratio than First Watch Restaurant Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

4.0% of Bragg Gaming Group shares are owned by institutional investors. Comparatively, 96.1% of First Watch Restaurant Group shares are owned by institutional investors. 26.4% of Bragg Gaming Group shares are owned by company insiders. Comparatively, 6.1% of First Watch Restaurant Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

First Watch Restaurant Group beats Bragg Gaming Group on 13 of the 15 factors compared between the two stocks.

About Bragg Gaming Group

Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.