Critical Review: Tuya (NYSE:TUYA) versus Elys BMG Group (NASDAQ:ELYS)

Elys BMG Group (NASDAQ:ELYS) and Tuya (NYSE:TUYA) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings for Elys BMG Group and Tuya, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elys BMG Group	0	0	1	0	3.00
Tuya	0	0	2	0	3.00

Elys BMG Group currently has a consensus target price of $1.00, suggesting a potential upside of 640.19%. Tuya has a consensus target price of $2.70, suggesting a potential upside of 63.64%. Given Elys BMG Group’s higher probable upside, research analysts clearly believe Elys BMG Group is more favorable than Tuya.

Insider and Institutional Ownership

11.5% of Tuya shares are owned by institutional investors. 18.5% of Elys BMG Group shares are owned by company insiders. Comparatively, 2.1% of Tuya shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Elys BMG Group and Tuya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elys BMG Group	-40.25%	-525.11%	-138.50%
Tuya	-26.23%	-4.66%	-4.27%

Volatility and Risk

Elys BMG Group has a beta of 2.72, meaning that its share price is 172% more volatile than the S&P 500. Comparatively, Tuya has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Valuation and Earnings

This table compares Elys BMG Group and Tuya’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elys BMG Group	$43.86 million	0.12	-$18.26 million	($0.56)	-0.24
Tuya	$229.99 million	3.62	-$60.31 million	($0.11)	-15.00

Elys BMG Group has higher earnings, but lower revenue than Tuya. Tuya is trading at a lower price-to-earnings ratio than Elys BMG Group, indicating that it is currently the more affordable of the two stocks.

Summary

Tuya beats Elys BMG Group on 8 of the 13 factors compared between the two stocks.

About Elys BMG Group

Elys BMG Group, Inc. engages in the provision of business-to-consumer gaming services in the United States and Europe. The company offers betting platform software services to leisure betting establishments; and operates web based and land-based leisure betting establishments. Its gaming product offerings include sports betting; and online casino, such as online slot and table games, poker, bingo, skilled and interactive games, virtual sports betting, and horse racing. It provides its products through physical, land-based retail locations; newgioco.it or commercial webskins linked to its website; and mobile devices. The company was formerly known as Elys Game Technology, Corp. and changed its name to Elys BMG Group, Inc. in January 2024. Elys BMG Group, Inc. was incorporated in 1998 and is based in Toronto, Canada.

About Tuya

Tuya Inc. offers Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides IoT platform-as-a-service that enables brands, original equipment manufacturers, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers a wide range of cloud-based value-added services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company sells finished smart devices. It offers its solutions to smart home, smart business, healthcare, education, agriculture, outdoors and sport, and entertainment industries. The company was founded in 2014 and is based in Hangzhou, the People's Republic of China.