Analyzing Corsair Gaming (NASDAQ:CRSR) and Bally’s (NYSE:BALY)

Bally’s (NYSE:BALY) and Corsair Gaming (NASDAQ:CRSR) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Volatility & Risk

Bally’s has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Corsair Gaming has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bally’s and Corsair Gaming, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	2	4	0	0	1.67
Corsair Gaming	1	3	4	1	2.56

Bally’s currently has a consensus price target of $16.50, suggesting a potential upside of 18.03%. Corsair Gaming has a consensus price target of $7.69, suggesting a potential upside of 13.13%. Given Bally’s’ higher probable upside, analysts plainly believe Bally’s is more favorable than Corsair Gaming.

Profitability

This table compares Bally’s and Corsair Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-17.41%	-63.71%	-4.45%
Corsair Gaming	-0.87%	6.71%	3.34%

Institutional & Insider Ownership

70.4% of Bally’s shares are held by institutional investors. Comparatively, 25.7% of Corsair Gaming shares are held by institutional investors. 74.9% of Bally’s shares are held by company insiders. Comparatively, 58.4% of Corsair Gaming shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Bally’s and Corsair Gaming”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.45 billion	0.28	-$567.75 million	($4.88)	-2.86
Corsair Gaming	$1.47 billion	0.49	-$12.47 million	($0.13)	-52.27

Corsair Gaming has lower revenue, but higher earnings than Bally’s. Corsair Gaming is trading at a lower price-to-earnings ratio than Bally’s, indicating that it is currently the more affordable of the two stocks.

Summary

Corsair Gaming beats Bally’s on 10 of the 15 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

About Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.