Rush Street Interactive (NYSE:RSI) versus Capcom (OTCMKTS:CCOEY) Critical Analysis

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

Volatility and Risk

Capcom has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Capcom and Rush Street Interactive, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capcom	0	1	1	0	2.50
Rush Street Interactive	0	3	9	1	2.85

Rush Street Interactive has a consensus target price of $22.88, indicating a potential upside of 10.75%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Rush Street Interactive is more favorable than Capcom.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capcom	32.82%	26.93%	21.51%
Rush Street Interactive	2.94%	17.95%	8.44%

Institutional & Insider Ownership

24.8% of Rush Street Interactive shares are owned by institutional investors. 56.9% of Rush Street Interactive shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Capcom and Rush Street Interactive”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capcom	$1.11 billion	10.33	$319.78 million	$0.51	21.16
Rush Street Interactive	$1.13 billion	4.23	$33.31 million	$0.28	73.77

Capcom has higher earnings, but lower revenue than Rush Street Interactive. Capcom is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.

Summary

Rush Street Interactive beats Capcom on 9 of the 15 factors compared between the two stocks.

About Capcom

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.

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.