GameSquare (NASDAQ:GAME – Get Free Report) and Universal Entertainment (OTCMKTS:UETMF – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
64.3% of GameSquare shares are held by institutional investors. 11.6% of GameSquare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
GameSquare has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Universal Entertainment has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameSquare | 0 | 0 | 3 | 1 | 3.25 |
| Universal Entertainment | 0 | 0 | 0 | 0 | 0.00 |
GameSquare currently has a consensus price target of $3.6667, suggesting a potential upside of 298.55%. Given GameSquare’s stronger consensus rating and higher probable upside, research analysts plainly believe GameSquare is more favorable than Universal Entertainment.
Profitability
This table compares GameSquare and Universal Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GameSquare | -48.85% | -162.44% | -48.45% |
| Universal Entertainment | N/A | N/A | N/A |
Earnings and Valuation
This table compares GameSquare and Universal Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GameSquare | $96.20 million | 0.47 | -$48.75 million | ($1.51) | -0.61 |
| Universal Entertainment | $1.28 billion | 0.44 | $201.92 million | ($1.28) | -5.63 |
Universal Entertainment has higher revenue and earnings than GameSquare. Universal Entertainment is trading at a lower price-to-earnings ratio than GameSquare, indicating that it is currently the more affordable of the two stocks.
Summary
GameSquare beats Universal Entertainment on 9 of the 15 factors compared between the two stocks.
About GameSquare
GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.
About Universal Entertainment
Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.
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