Financial Contrast: SJM (OTCMKTS:SJMHF) versus Rush Street Interactive (NYSE:RSI)

Rush Street Interactive (NYSE:RSI) and SJM (OTCMKTS:SJMHF) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Institutional & Insider Ownership

24.8% of Rush Street Interactive shares are held by institutional investors. 52.9% of Rush Street Interactive shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Rush Street Interactive and SJM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.98%	17.21%	8.00%
SJM	N/A	N/A	N/A

Volatility and Risk

Rush Street Interactive has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, SJM has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Rush Street Interactive and SJM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	3	9	1	2.85
SJM	0	2	0	0	2.00

Rush Street Interactive presently has a consensus target price of $31.50, suggesting a potential downside of 6.09%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Rush Street Interactive is more favorable than SJM.

Earnings & Valuation

This table compares Rush Street Interactive and SJM”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$1.13 billion	6.88	$33.31 million	$0.31	108.21
SJM	$3.69 billion	0.35	$410,000.00	N/A	N/A

Rush Street Interactive has higher earnings, but lower revenue than SJM.

Summary

Rush Street Interactive beats SJM on 12 of the 13 factors compared between the two stocks.

About Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.