Analyzing Angel Studios (NYSE:ANGX) & GRAVITY (NASDAQ:GRVY)

Angel Studios (NYSE:ANGX) and GRAVITY (NASDAQ:GRVY) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Volatility and Risk

Angel Studios has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500. Comparatively, GRAVITY has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Angel Studios and GRAVITY, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Studios	1	1	4	1	2.71
GRAVITY	0	1	0	0	2.00

Angel Studios presently has a consensus price target of $8.75, indicating a potential upside of 151.80%. Given Angel Studios’ stronger consensus rating and higher possible upside, research analysts clearly believe Angel Studios is more favorable than GRAVITY.

Earnings & Valuation

This table compares Angel Studios and GRAVITY”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Studios	$321.56 million	2.02	-$170.48 million	($0.93)	-3.74
GRAVITY	$388.04 million	1.22	$47.22 million	$8.15	8.38

GRAVITY has higher revenue and earnings than Angel Studios. Angel Studios is trading at a lower price-to-earnings ratio than GRAVITY, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

38.6% of Angel Studios shares are held by institutional investors. Comparatively, 9.9% of GRAVITY shares are held by institutional investors. 30.1% of Angel Studios 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.

Profitability

This table compares Angel Studios and GRAVITY’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Studios	-37.44%	N/A	-66.19%
GRAVITY	14.92%	12.70%	10.85%

About Angel Studios

Southport Acquisition Corporation does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or assets. It intends to identify business opportunities in the field of financial software space with a focus on mortgage and real estate verticals. The company was incorporated in 2021 and is based in Del Mar, California.

About GRAVITY

Gravity Co., Ltd. develops and publishes online and mobile games worldwide. It offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Landverse. Its mobile games portfolio includes Ragnarok M; Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; Ragnarok Arena; WITH ISLAND; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; Generation Zombie; Ragnarok Idle Adventure; Ragnarok 20 Heroes; White Chord; WITH: Whale In The High; Ragnarok Lost Memories; and Paladog Tactics. It also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; Pigromance for Steam, Stove, Nintendo Switch, Xbox One, Xbox Series X|S; ALTF4 11 for Steam and Stove; Wetory for Steam, Stove, Nintedo Switch; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin, and Kongsuni; and markets dolls, stationery, food, and other character based merchandises, as well as game manuals, monthly magazines, and other publications; PC games, including Puzzle Platformer, ALTF42, Ragnarok ZERO, KAMiBAKO-Mythology of Cube, Psychodemic, and FINAL KNIGHT; social network games and mobile games, such as Ragnarok V: Returns, Ragnarok: The Lost Memories and Ragnrok Begins in-house; and web-browser-based games, such as Ragnarok Prequel and Ragnarok Prequel II. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.