DouYu International (NASDAQ:DOYU – Get Free Report) and Galaxy Gaming (OTCMKTS:GLXZ – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Valuation and Earnings
This table compares DouYu International and Galaxy Gaming”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DouYu International | $585.10 million | 0.36 | -$42.03 million | ($0.88) | -7.86 |
| Galaxy Gaming | $31.74 million | 2.22 | -$2.63 million | ($0.03) | -92.80 |
Risk and Volatility
DouYu International has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for DouYu International and Galaxy Gaming, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DouYu International | 1 | 3 | 0 | 0 | 1.75 |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
DouYu International presently has a consensus price target of $7.00, indicating a potential upside of 1.16%. Given DouYu International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe DouYu International is more favorable than Galaxy Gaming.
Insider & Institutional Ownership
17.9% of DouYu International shares are owned by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are owned by institutional investors. 17.3% of DouYu International shares are owned by company insiders. Comparatively, 21.9% of Galaxy Gaming shares are owned 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.
Profitability
This table compares DouYu International and Galaxy Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DouYu International | -4.74% | -1.57% | -1.07% |
| Galaxy Gaming | -3.02% | N/A | -2.99% |
Summary
DouYu International beats Galaxy Gaming on 7 of the 13 factors compared between the two stocks.
About DouYu International
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.
About Galaxy Gaming
Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.
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