Contrasting GameSquare (NASDAQ:GAME) and Saga Communications (NASDAQ:SGA)

Saga Communications (NASDAQ:SGA) and GameSquare (NASDAQ:GAME) are both small-cap communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Profitability

This table compares Saga Communications and GameSquare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saga Communications	-8.55%	3.87%	2.90%
GameSquare	-96.06%	7.97%	3.14%

Analyst Ratings

This is a breakdown of current ratings and price targets for Saga Communications and GameSquare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saga Communications	1	2	0	0	1.67
GameSquare	1	0	1	1	2.67

Insider & Institutional Ownership

74.3% of Saga Communications shares are held by institutional investors. Comparatively, 64.2% of GameSquare shares are held by institutional investors. 23.2% of Saga Communications shares are held by insiders. Comparatively, 6.8% of GameSquare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Saga Communications has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, GameSquare has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Valuation and Earnings

This table compares Saga Communications and GameSquare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saga Communications	$103.94 million	0.56	-$7.90 million	($1.38)	-6.65
GameSquare	$45.00 million	1.01	-$40.10 million	($0.62)	-0.70

Saga Communications has higher revenue and earnings than GameSquare. Saga Communications 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 Saga Communications on 9 of the 14 factors compared between the two stocks.

About Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

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.