Corsair Gaming (NASDAQ:CRSR – Get Free Report) and Simplicity Esports and Gaming (OTCMKTS:WINR – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
Corsair Gaming has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Simplicity Esports and Gaming has a beta of -0.88, meaning that its stock price is 188% less volatile than the S&P 500.
Profitability
This table compares Corsair Gaming and Simplicity Esports and Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Corsair Gaming | -2.46% | 3.37% | 1.66% |
| Simplicity Esports and Gaming | N/A | N/A | N/A |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Corsair Gaming | $1.32 billion | 0.50 | -$99.18 million | ($0.34) | -18.06 |
| Simplicity Esports and Gaming | N/A | N/A | N/A | ($0.04) | N/A |
Simplicity Esports and Gaming has lower revenue, but higher earnings than Corsair Gaming. Corsair Gaming is trading at a lower price-to-earnings ratio than Simplicity Esports and Gaming, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Corsair Gaming and Simplicity Esports and Gaming, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Corsair Gaming | 1 | 3 | 4 | 0 | 2.38 |
| Simplicity Esports and Gaming | 0 | 0 | 0 | 0 | 0.00 |
Corsair Gaming currently has a consensus target price of $9.29, indicating a potential upside of 51.23%. Given Corsair Gaming’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Corsair Gaming is more favorable than Simplicity Esports and Gaming.
Insider and Institutional Ownership
25.7% of Corsair Gaming shares are owned by institutional investors. 58.4% of Corsair Gaming shares are owned by insiders. Comparatively, 15.4% of Simplicity Esports and Gaming shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Corsair Gaming beats Simplicity Esports and Gaming on 9 of the 11 factors compared between the two stocks.
About Corsair Gaming
Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.
About Simplicity Esports and Gaming
Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.
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