Motorsport Games (NASDAQ:MSGM) and Gaxos.ai (NASDAQ:GXAI) Financial Comparison

Motorsport Games (NASDAQ:MSGM) and Gaxos.ai (NASDAQ:GXAI) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Risk & Volatility

Motorsport Games has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Gaxos.ai has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Motorsport Games and Gaxos.ai”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$11.30 million	1.96	$6.93 million	$1.44	2.66
Gaxos.ai	$1.93 million	6.98	-$3.90 million	($0.55)	-2.40

Motorsport Games has higher revenue and earnings than Gaxos.ai. Gaxos.ai is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Motorsport Games and Gaxos.ai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	0	2.00
Gaxos.ai	1	0	0	0	1.00

Institutional and Insider Ownership

1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 42.6% of Gaxos.ai shares are owned by institutional investors. 4.6% of Motorsport Games shares are owned by insiders. Comparatively, 3.5% of Gaxos.ai shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Motorsport Games and Gaxos.ai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	61.31%	129.70%	76.36%
Gaxos.ai	-203.88%	-27.61%	-26.62%

Summary

Motorsport Games beats Gaxos.ai on 10 of the 12 factors compared between the two stocks.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.

About Gaxos.ai

Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.