Educational Development (NASDAQ:EDUC – Get Free Report) and Gambling.com Group (NASDAQ:GRSD – Get Free Report) 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 risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Insider & Institutional Ownership
19.6% of Educational Development shares are held by institutional investors. Comparatively, 72.3% of Gambling.com Group shares are held by institutional investors. 11.9% of Educational Development shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Educational Development and Gambling.com Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Educational Development | $22.91 million | 0.39 | $2.33 million | $0.19 | 5.58 |
| Gambling.com Group | $165.45 million | 0.23 | -$32.93 million | ($1.04) | -1.06 |
Educational Development has higher earnings, but lower revenue than Gambling.com Group. Gambling.com Group is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Educational Development has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Gambling.com Group has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Profitability
This table compares Educational Development and Gambling.com Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Educational Development | 8.60% | -18.72% | -14.64% |
| Gambling.com Group | -22.36% | 13.87% | 5.33% |
Analyst Recommendations
This is a breakdown of recent ratings for Educational Development and Gambling.com Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
| Gambling.com Group | 1 | 3 | 4 | 1 | 2.56 |
Gambling.com Group has a consensus target price of $6.43, indicating a potential upside of 484.42%. Given Gambling.com Group’s stronger consensus rating and higher possible upside, analysts plainly believe Gambling.com Group is more favorable than Educational Development.
Summary
Gambling.com Group beats Educational Development on 8 of the 15 factors compared between the two stocks.
About Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
About Gambling.com Group
Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.
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