Meridian (NASDAQ:MRDN – Get Free Report) and Sportech (OTCMKTS:SPOZF – Get Free Report) 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.
Institutional and Insider Ownership
2.7% of Meridian shares are owned by institutional investors. 9.4% of Meridian 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.
Earnings & Valuation
This table compares Meridian and Sportech”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Meridian | $182.86 million | 0.97 | -$89.90 million | ($6.74) | -2.08 |
| Sportech | N/A | N/A | N/A | N/A | N/A |
Sportech has lower revenue, but higher earnings than Meridian.
Profitability
This table compares Meridian and Sportech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Meridian | -41.41% | -117.87% | -58.87% |
| Sportech | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations for Meridian and Sportech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Meridian | 1 | 0 | 0 | 0 | 1.00 |
| Sportech | 0 | 0 | 0 | 0 | 0.00 |
Meridian presently has a consensus target price of $21.60, suggesting a potential upside of 53.74%. Given Meridian’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Meridian is more favorable than Sportech.
Summary
Meridian beats Sportech on 5 of the 8 factors compared between the two stocks.
About Meridian
Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region. The RKings & CFAC segment is involved in pay-to-enter prize competitions and trade promotions conducted in the United Kingdom and Australia. It generates the majority of its revenue from the MeridianBet Group segment.
About Sportech
Sportech Limited, an operator and technology supplier in the gambling market, owns and operates gaming venues in the United Kingdom and North and South America. It offers online, mobile, call center, and retail betting from venues located across Connecticut. The company also provides lottery software and services, as well as operates a pari-mutuel betting website. Sportech PLC was incorporated in 1979 and is based in Edinburgh, the United Kingdom.
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