TKO Group (NYSE:TKO) & Esports Entertainment Group (NASDAQ:GMBL) Critical Analysis

TKO Group (NYSE:TKOGet Free Report) and Esports Entertainment Group (NASDAQ:GMBLGet Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional and Insider Ownership

66.3% of TKO Group shares are held by institutional investors. Comparatively, 1.9% of Esports Entertainment Group shares are held by institutional investors. 38.9% of TKO Group shares are held by insiders. Comparatively, 14.0% of Esports Entertainment Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

TKO Group has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Esports Entertainment Group has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for TKO Group and Esports Entertainment Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TKO Group 0 2 7 0 2.78
Esports Entertainment Group 0 0 0 0 N/A

TKO Group currently has a consensus target price of $106.25, suggesting a potential upside of 23.65%. Given TKO Group’s higher probable upside, equities research analysts clearly believe TKO Group is more favorable than Esports Entertainment Group.

Profitability

This table compares TKO Group and Esports Entertainment Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TKO Group 7.12% 7.37% 4.76%
Esports Entertainment Group -205.06% N/A -61.71%

Earnings & Valuation

This table compares TKO Group and Esports Entertainment Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TKO Group $1.29 billion 11.51 $195.59 million $1.29 66.61
Esports Entertainment Group $22.97 million 0.03 -$32.28 million N/A N/A

TKO Group has higher revenue and earnings than Esports Entertainment Group.

Summary

TKO Group beats Esports Entertainment Group on 10 of the 11 factors compared between the two stocks.

About TKO Group

(Get Free Report)

TKO Group Holdings, Inc. operates as a sports and entertainment company. It operates through four segments: Media and Content, Live Events, Sponsorships, and Consumer Products Licensing. The company produces live events, television programs, and long-form and short-form video content across various platforms, including broadcast, pay television, and streaming, as well as digital and social media across approximately 170 countries. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. The company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. TKO Group Holdings, Inc. is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.

About Esports Entertainment Group

(Get Free Report)

Esports Entertainment Group, Inc. operates as an iGaming and entertainment company in the United States and internationally. It operates through two segments, EEG iGaming and EEG Games. The EEG iGaming segment operates iDefix, a casino platform. The EEG Games segment operates ggCircuit, a local area network center management software and services for managing mission critical functions, such as game licensing and payments; and creates esports content for distribution to the betting industry. The company was formerly known as VGambling, Inc. and changed its name to Esports Entertainment Group, Inc. in May 2017. Esports Entertainment Group, Inc. is based in St. Julian's, Malta.

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