Analyzing Priority Technology (NASDAQ:PRTH) and Sharplink Gaming (NASDAQ:SBET)

Priority Technology (NASDAQ:PRTH) and Sharplink Gaming (NASDAQ:SBET) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Priority Technology and Sharplink Gaming, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Priority Technology	0	4	2	0	2.33
Sharplink Gaming	1	1	9	0	2.73

Priority Technology presently has a consensus target price of $8.50, suggesting a potential upside of 57.70%. Sharplink Gaming has a consensus target price of $15.39, suggesting a potential upside of 89.97%. Given Sharplink Gaming’s stronger consensus rating and higher possible upside, analysts clearly believe Sharplink Gaming is more favorable than Priority Technology.

Risk & Volatility

Priority Technology has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Sharplink Gaming has a beta of 10.56, suggesting that its stock price is 956% more volatile than the S&P 500.

Institutional and Insider Ownership

11.5% of Priority Technology shares are owned by institutional investors. Comparatively, 13.8% of Sharplink Gaming shares are owned by institutional investors. 59.4% of Priority Technology shares are owned by company insiders. Comparatively, 3.6% of Sharplink Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Priority Technology and Sharplink Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Priority Technology	5.61%	-104.91%	3.87%
Sharplink Gaming	-3,406.29%	-33.40%	-33.30%

Earnings & Valuation

This table compares Priority Technology and Sharplink Gaming”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Priority Technology	$953.01 million	0.47	$55.68 million	$0.69	7.81
Sharplink Gaming	$50.20 million	35.05	-$734.59 million	$0.05	162.00

Priority Technology has higher revenue and earnings than Sharplink Gaming. Priority Technology is trading at a lower price-to-earnings ratio than Sharplink Gaming, indicating that it is currently the more affordable of the two stocks.

Summary

Sharplink Gaming beats Priority Technology on 8 of the 14 factors compared between the two stocks.

About Priority Technology

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.

About Sharplink Gaming

SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.