NeoGames (NGMS) and Its Rivals Head-To-Head Analysis

NeoGames (NASDAQ:NGMS – Get Rating) is one of 33 publicly-traded companies in the “Amusement & recreation services” industry, but how does it weigh in compared to its rivals? We will compare NeoGames to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NeoGames and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoGames	0	0	2	0	3.00
NeoGames Competitors	73	273	384	10	2.45

NeoGames currently has a consensus price target of $25.00, suggesting a potential upside of 79.21%. As a group, “Amusement & recreation services” companies have a potential upside of 51.56%. Given NeoGames’ stronger consensus rating and higher possible upside, equities research analysts plainly believe NeoGames is more favorable than its rivals.

Profitability

This table compares NeoGames and its rivals’ 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%

Valuation & Earnings

This table compares NeoGames and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NeoGames	$50.46 million	$4.65 million	-1,395.00
NeoGames Competitors	$996.05 million	-$74.95 million	61.92

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

Insider and Institutional Ownership

42.4% of NeoGames shares are owned by institutional investors. Comparatively, 33.1% of shares of all “Amusement & recreation services” companies are owned by institutional investors. 27.3% of shares of all “Amusement & recreation services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

NeoGames has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, NeoGames’ rivals have a beta of -0.33, suggesting that their average stock price is 133% less volatile than the S&P 500.

Summary

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

About NeoGames (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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