Comparing Inspired Entertainment (INSE) and Its Peers

Inspired Entertainment (NASDAQ:INSE) is one of 383 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare Inspired Entertainment to similar businesses based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, valuation, risk and earnings.

Earnings and Valuation

This table compares Inspired Entertainment and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Inspired Entertainment	$256.60 million	-$17.00 million	-16.92
Inspired Entertainment Competitors	$3.43 billion	$250.18 million	-160.79

Inspired Entertainment’s competitors have higher revenue and earnings than Inspired Entertainment. Inspired Entertainment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Inspired Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspired Entertainment	-2.96%	-30.08%	-0.36%
Inspired Entertainment Competitors	8.44%	-42.19%	1.97%

Risk and Volatility

Inspired Entertainment has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Inspired Entertainment’s competitors have a beta of 1.66, indicating that their average share price is 66% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Inspired Entertainment and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspired Entertainment	1	2	4	0	2.43
Inspired Entertainment Competitors	3839	17331	25651	910	2.50

Inspired Entertainment presently has a consensus target price of $9.81, indicating a potential upside of 123.01%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 52.95%. Given Inspired Entertainment’s higher probable upside, analysts clearly believe Inspired Entertainment is more favorable than its competitors.

Insider & Institutional Ownership

77.4% of Inspired Entertainment shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 14.4% of Inspired Entertainment shares are held by insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Inspired Entertainment competitors beat Inspired Entertainment on 8 of the 13 factors compared.

About Inspired Entertainment

Inspired Entertainment is a gaming technology company that develops and supplies products and services to operators in regulated gaming, betting and leisure markets. Its offerings include gaming machines and content for land-based venues, as well as digital games for online platforms. The company also provides virtual sports products, which use computer-generated events such as football and horse racing for betting, and systems that support the delivery and management of gaming content. Its leisure business supplies amusement and gaming products to venues such as pubs and other out-of-home entertainment locations.