Light & Wonder (NASDAQ:LNW – Get Free Report) and Galaxy Gaming (OTCMKTS:GLXZ – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Profitability
This table compares Light & Wonder and Galaxy Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Light & Wonder | 10.89% | 71.17% | 8.73% |
| Galaxy Gaming | -3.02% | N/A | -2.99% |
Analyst Ratings
This is a summary of recent ratings for Light & Wonder and Galaxy Gaming, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Light & Wonder | 1 | 4 | 5 | 0 | 2.40 |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
Insider & Institutional Ownership
88.1% of Light & Wonder shares are held by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are held by institutional investors. 2.2% of Light & Wonder shares are held by company insiders. Comparatively, 21.9% of Galaxy Gaming shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Light & Wonder has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
Earnings & Valuation
This table compares Light & Wonder and Galaxy Gaming”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Light & Wonder | $3.22 billion | 2.31 | $336.00 million | $4.59 | 19.86 |
| Galaxy Gaming | $31.74 million | 2.19 | -$2.63 million | ($0.03) | -91.67 |
Light & Wonder has higher revenue and earnings than Galaxy Gaming. Galaxy Gaming is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.
Summary
Light & Wonder beats Galaxy Gaming on 13 of the 14 factors compared between the two stocks.
About Light & Wonder
Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.
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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