Comparing Motorsport Games (NASDAQ:MSGM) and Roblox (NYSE:RBLX)

Motorsport Games (NASDAQ:MSGM) and Roblox (NYSE:RBLX) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Volatility and Risk

Motorsport Games has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500. Comparatively, Roblox has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	52.74%	215.50%	52.86%
Roblox	-30.90%	-986.36%	-16.20%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Motorsport Games and Roblox, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	0	2.00
Roblox	0	7	14	1	2.73

Motorsport Games presently has a consensus target price of $5.00, suggesting a potential upside of 270.37%. Roblox has a consensus target price of $55.30, suggesting a potential downside of 2.86%. Given Motorsport Games’ higher probable upside, equities analysts plainly believe Motorsport Games is more favorable than Roblox.

Insider & Institutional Ownership

1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 94.5% of Roblox shares are owned by institutional investors. 7.6% of Motorsport Games shares are owned by company insiders. Comparatively, 22.2% of Roblox shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$6.91 million	0.74	-$13.05 million	$1.62	0.83
Roblox	$2.80 billion	12.36	-$1.15 billion	($1.64)	-34.71

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

Summary

Motorsport Games beats Roblox on 8 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 Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.