Critical Analysis: Simplicity Esports and Gaming (WINR) and Its Rivals

Valuation and Earnings

This table compares Simplicity Esports and Gaming and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	0.00
Simplicity Esports and Gaming Competitors	$2.50 billion	$18.86 million	7.92

Simplicity Esports and Gaming’s competitors have higher revenue and earnings than Simplicity Esports and Gaming. Simplicity Esports and Gaming is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Simplicity Esports and Gaming has a beta of -0.88, indicating that its stock price is 188% less volatile than the S&P 500. Comparatively, Simplicity Esports and Gaming’s competitors have a beta of 2.59, indicating that their average stock price is 159% more volatile than the S&P 500.

Institutional & Insider Ownership

44.0% of shares of all “GAMING” companies are held by institutional investors. 15.4% of Simplicity Esports and Gaming shares are held by company insiders. Comparatively, 23.0% of shares of all “GAMING” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Simplicity Esports and Gaming and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
Simplicity Esports and Gaming Competitors	-21.88%	-37.84%	-1.75%

Summary

Simplicity Esports and Gaming competitors beat Simplicity Esports and Gaming on 5 of the 8 factors compared.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.