Critical Analysis: UbiSoft Entertainment (OTCMKTS:UBSFY) vs. Corsair Gaming (NASDAQ:CRSR)

Corsair Gaming (NASDAQ:CRSR) and UbiSoft Entertainment (OTCMKTS:UBSFY) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Earnings & Valuation

This table compares Corsair Gaming and UbiSoft Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corsair Gaming	$1.47 billion	0.49	-$99.18 million	($0.13)	-52.27
UbiSoft Entertainment	$2.04 billion	0.34	-$170.71 million	N/A	N/A

Corsair Gaming has higher earnings, but lower revenue than UbiSoft Entertainment.

Analyst Ratings

This is a summary of current ratings and recommmendations for Corsair Gaming and UbiSoft Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corsair Gaming	1	3	4	1	2.56
UbiSoft Entertainment	1	0	0	1	2.50

Corsair Gaming currently has a consensus target price of $7.69, suggesting a potential upside of 13.13%. Given Corsair Gaming’s stronger consensus rating and higher probable upside, equities analysts plainly believe Corsair Gaming is more favorable than UbiSoft Entertainment.

Risk and Volatility

Corsair Gaming has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, UbiSoft Entertainment has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corsair Gaming	-0.87%	6.79%	3.36%
UbiSoft Entertainment	N/A	N/A	N/A

Insider & Institutional Ownership

25.7% of Corsair Gaming shares are owned by institutional investors. Comparatively, 0.1% of UbiSoft Entertainment shares are owned by institutional investors. 58.4% of Corsair Gaming shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Corsair Gaming beats UbiSoft Entertainment on 10 of the 12 factors compared between the two stocks.

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.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.