Reviewing Motorsport Games (NASDAQ:MSGM) & Rush Street Interactive (NYSE:RSI)

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

Volatility & Risk

Rush Street Interactive has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$924.08 million	4.34	$2.39 million	$0.25	69.92
Motorsport Games	$8.69 million	2.50	-$2.75 million	$0.40	9.40

Rush Street Interactive has higher revenue and earnings than Motorsport Games. Motorsport Games 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rush Street Interactive and Motorsport Games, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	3	8	0	2.73
Motorsport Games	0	1	0	0	2.00

Rush Street Interactive presently has a consensus price target of $21.38, indicating a potential upside of 22.28%. Given Rush Street Interactive’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Rush Street Interactive is more favorable than Motorsport Games.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.83%	17.11%	8.27%
Motorsport Games	34.24%	86.01%	42.20%

Insider & Institutional Ownership

24.8% of Rush Street Interactive shares are held by institutional investors. Comparatively, 1.7% of Motorsport Games shares are held by institutional investors. 56.9% of Rush Street Interactive shares are held by company insiders. Comparatively, 17.3% of Motorsport Games shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Rush Street Interactive beats Motorsport Games on 9 of the 14 factors compared between the two stocks.

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.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.