Critical Survey: Corsair Gaming (NASDAQ:CRSR) vs. Motorsport Games (NASDAQ:MSGM)

Motorsport Games (NASDAQ:MSGM) and Corsair Gaming (NASDAQ:CRSR) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Motorsport Games and Corsair Gaming, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	2	0	0	2.00
Corsair Gaming	1	2	4	1	2.62

Corsair Gaming has a consensus price target of $9.57, suggesting a potential downside of 9.10%. Given Corsair Gaming’s stronger consensus rating and higher possible upside, analysts clearly believe Corsair Gaming is more favorable than Motorsport Games.

Earnings and Valuation

This table compares Motorsport Games and Corsair Gaming”s top-line 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	1.63	$6.93 million	$1.17	3.77
Corsair Gaming	$1.47 billion	0.76	-$12.47 million	$0.08	131.62

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	45.70%	87.43%	56.50%
Corsair Gaming	0.71%	9.71%	4.97%

Volatility and Risk

Motorsport Games has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Corsair Gaming has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.

Institutional and Insider Ownership

1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 25.7% of Corsair Gaming shares are owned by institutional investors. 4.6% of Motorsport Games shares are owned by company insiders. Comparatively, 54.5% of Corsair Gaming shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Corsair Gaming beats Motorsport Games on 9 of the 15 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 Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.