Analyzing Cedar Fair (NYSE:FUN) and Esports Entertainment Group (NASDAQ:GMBL)

Cedar Fair (NYSE:FUN) and Esports Entertainment Group (NASDAQ:GMBL) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Volatility & Risk

Cedar Fair has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Esports Entertainment Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Cedar Fair and Esports Entertainment Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cedar Fair	1	1	11	0	2.77
Esports Entertainment Group	0	0	0	0	0.00

Cedar Fair presently has a consensus price target of $55.92, suggesting a potential upside of 21.07%. Given Cedar Fair’s stronger consensus rating and higher probable upside, analysts plainly believe Cedar Fair is more favorable than Esports Entertainment Group.

Institutional and Insider Ownership

64.7% of Cedar Fair shares are owned by institutional investors. Comparatively, 51.4% of Esports Entertainment Group shares are owned by institutional investors. 1.8% of Cedar Fair shares are owned by company insiders. Comparatively, 14.0% of Esports Entertainment Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cedar Fair and Esports Entertainment Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cedar Fair	$1.80 billion	2.58	$124.56 million	($0.64)	-72.17
Esports Entertainment Group	$22.97 million	0.00	-$32.28 million	N/A	N/A

Cedar Fair has higher revenue and earnings than Esports Entertainment Group.

Profitability

This table compares Cedar Fair and Esports Entertainment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cedar Fair	0.99%	113.05%	2.41%
Esports Entertainment Group	-260.75%	N/A	-192.97%

Summary

Cedar Fair beats Esports Entertainment Group on 11 of the 12 factors compared between the two stocks.

About Cedar Fair

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

About Esports Entertainment Group

Esports Entertainment Group, Inc. operates as an iGaming and entertainment company in the United States and internationally. It operates through two segments, EEG iGaming and EEG Games. The EEG iGaming segment operates iDefix, a casino platform. The EEG Games segment operates ggCircuit, a local area network center management software and services for managing mission critical functions, such as game licensing and payments; and creates esports content for distribution to the betting industry. The company was formerly known as VGambling, Inc. and changed its name to Esports Entertainment Group, Inc. in May 2017. Esports Entertainment Group, Inc. is based in St. Julian's, Malta.