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

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

Institutional and Insider Ownership

64.2% of GameSquare shares are owned by institutional investors. Comparatively, 74.3% of Saga Communications shares are owned by institutional investors. 6.8% of GameSquare shares are owned by company insiders. Comparatively, 23.2% of Saga Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GameSquare	-96.06%	6.47%	2.87%
Saga Communications	-8.55%	3.84%	2.87%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$45.00 million	0.95	-$40.10 million	($0.62)	-0.67
Saga Communications	$107.11 million	0.58	-$7.90 million	($1.38)	-7.07

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.

Analyst Ratings

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

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

Summary

GameSquare beats Saga Communications on 8 of the 13 factors compared between the two stocks.

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.

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.