Comparing DouYu International (NASDAQ:DOYU) & Motorsport Games (NASDAQ:MSGM)

DouYu International (NASDAQ:DOYU) and Motorsport Games (NASDAQ:MSGM) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares DouYu International and Motorsport Games”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$585.10 million	0.40	-$42.03 million	($0.91)	-8.43
Motorsport Games	$8.69 million	1.88	-$2.75 million	$0.26	10.88

Motorsport Games has lower revenue, but higher earnings than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DouYu International and Motorsport Games’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DouYu International	-4.73%	-3.32%	-2.39%
Motorsport Games	30.12%	94.30%	35.66%

Institutional & Insider Ownership

17.9% of DouYu International shares are held by institutional investors. Comparatively, 1.7% of Motorsport Games shares are held by institutional investors. 17.3% of DouYu International shares are held by company insiders. Comparatively, 3.5% of Motorsport Games shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

DouYu International has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for DouYu International and Motorsport Games, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	0	3	0	0	2.00
Motorsport Games	0	0	0	0	0.00

DouYu International currently has a consensus price target of $7.00, indicating a potential downside of 8.74%. Given DouYu International’s stronger consensus rating and higher probable upside, analysts plainly believe DouYu International is more favorable than Motorsport Games.

Summary

Motorsport Games beats DouYu International on 8 of the 13 factors compared between the two stocks.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.