Critical Review: Bally’s (NYSE:BALY) vs. Corsair Gaming (NASDAQ:CRSR)

Corsair Gaming (NASDAQ:CRSR) and Bally’s (NYSE:BALY) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares Corsair Gaming and Bally’s”s 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	-$12.47 million	($0.13)	-52.27
Bally’s	$2.45 billion	0.28	-$567.75 million	($4.88)	-2.86

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

Institutional and Insider Ownership

25.7% of Corsair Gaming shares are held by institutional investors. Comparatively, 70.4% of Bally’s shares are held by institutional investors. 58.4% of Corsair Gaming shares are held by insiders. Comparatively, 74.9% of Bally’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corsair Gaming	-0.87%	6.71%	3.34%
Bally’s	-17.41%	-63.71%	-4.45%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Corsair Gaming and Bally’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corsair Gaming	1	3	4	1	2.56
Bally’s	2	4	0	0	1.67

Corsair Gaming presently has a consensus price target of $7.69, suggesting a potential upside of 13.13%. Bally’s has a consensus price target of $16.50, suggesting a potential upside of 18.03%. Given Bally’s’ higher probable upside, analysts clearly believe Bally’s is more favorable than Corsair Gaming.

Risk & Volatility

Corsair Gaming has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Bally’s has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Summary

Corsair Gaming beats Bally’s on 10 of the 15 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 Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.