NeoGames (NGMS) versus Its Competitors Critical Analysis

NeoGames (NASDAQ:NGMSGet Rating) is one of 33 public companies in the “Amusement & recreation services” industry, but how does it weigh in compared to its competitors? We will compare NeoGames to related businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares NeoGames and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeoGames -0.38% 9.83% 5.46%
NeoGames Competitors -2,737.81% -1.13% -206.04%

Earnings and Valuation

This table compares NeoGames and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NeoGames $50.46 million $4.65 million -1,385.00
NeoGames Competitors $996.05 million -$74.95 million 57.74

NeoGames’ competitors have higher revenue, but lower earnings than NeoGames. NeoGames is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for NeoGames and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeoGames 0 0 2 0 3.00
NeoGames Competitors 73 271 382 10 2.45

NeoGames currently has a consensus target price of $25.00, indicating a potential upside of 80.51%. As a group, “Amusement & recreation services” companies have a potential upside of 59.33%. Given NeoGames’ stronger consensus rating and higher probable upside, research analysts clearly believe NeoGames is more favorable than its competitors.

Risk & Volatility

NeoGames has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, NeoGames’ competitors have a beta of -0.54, indicating that their average stock price is 154% less volatile than the S&P 500.

Insider & Institutional Ownership

42.4% of NeoGames shares are held by institutional investors. Comparatively, 33.1% of shares of all “Amusement & recreation services” companies are held by institutional investors. 27.2% of shares of all “Amusement & recreation services” companies 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

NeoGames beats its competitors on 9 of the 12 factors compared.

NeoGames Company Profile (Get Rating)

NeoGames S.A. provides iLottery solutions worldwide. The company offers various technology platforms, a range of value-added services, and a game studio that provides a portfolio of draw based games and instant tickets through personal computers, smartphones, and handheld devices. It also develops and operates online lotteries and games that allows lottery operators to distribute lottery products through online sales channels using the company's technology. In addition, the company offers software development and platforms sub-licensing services; and regulation and compliance, payment processing, risk management, player relationship management, and player value optimization services. The company was incorporated in 2014 and is headquartered in Tel Aviv, Israel.

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