Head to Head Review: GCL Global (NASDAQ:GCL) & Rush Street Interactive (NYSE:RSI)

GCL Global (NASDAQ:GCL) and Rush Street Interactive (NYSE:RSI) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Volatility & Risk

GCL Global has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for GCL Global and Rush Street Interactive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCL Global	1	0	0	0	1.00
Rush Street Interactive	0	4	8	0	2.67

Rush Street Interactive has a consensus target price of $21.25, suggesting a potential upside of 10.19%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Rush Street Interactive is more favorable than GCL Global.

Institutional and Insider Ownership

36.6% of GCL Global shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 49.4% of GCL Global shares are owned by insiders. Comparatively, 56.9% of Rush Street Interactive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares GCL Global and Rush Street Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCL Global	N/A	N/A	N/A
Rush Street Interactive	2.83%	17.11%	8.27%

Valuation and Earnings

This table compares GCL Global and Rush Street Interactive”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCL Global	$142.07 million	0.90	$5.59 million	($0.02)	-52.50
Rush Street Interactive	$924.08 million	4.79	$2.39 million	$0.25	77.14

GCL Global has higher earnings, but lower revenue than Rush Street Interactive. GCL Global is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.

Summary

Rush Street Interactive beats GCL Global on 12 of the 14 factors compared between the two stocks.

About GCL Global

GCL Global Holdings Ltd. unites people through immersive games and entertainment experiences, enabling creators to deliver engaging content and fun gameplay experiences to gaming communities worldwide with a strategic focus on the rapidly expanding Asian gaming market.

Drawing on a deep understanding of gaming trends and market dynamics, GCL Group leverages its diverse portfolio of digital and physical content to bridge cultures and audiences by introducing Asian-developed IP to a global audience across consoles, PCs, and streaming platforms.

About Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.