NeoGames (NGMS) & Its Rivals Financial Review

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
NeoGames	$50.46 million	$4.65 million	-1,514.00
NeoGames Competitors	$996.05 million	-$74.95 million	56.59

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

Profitability

This table compares NeoGames and its peers’ 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%

Analyst Ratings

This is a breakdown of recent recommendations for NeoGames and its peers, 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 presently has a consensus target price of $25.00, suggesting a potential upside of 65.13%. As a group, “Amusement & recreation services” companies have a potential upside of 49.97%. Given NeoGames’ stronger consensus rating and higher possible upside, analysts plainly believe NeoGames is more favorable than its peers.

Risk and Volatility

NeoGames has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, NeoGames’ peers have a beta of -0.33, meaning that their average stock price is 133% 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. 27.3% of shares of all “Amusement & recreation services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

NeoGames beats its peers on 9 of the 13 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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