Genius Sports (NYSE:GENI – Get Free Report) and Red Robin Gourmet Burgers (NASDAQ:RRGB – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
Genius Sports has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500.
Institutional and Insider Ownership
81.9% of Genius Sports shares are owned by institutional investors. Comparatively, 84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. 16.6% of Genius Sports shares are owned by insiders. Comparatively, 4.1% of Red Robin Gourmet Burgers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genius Sports | $669.49 million | 2.35 | -$111.58 million | ($0.68) | -9.38 |
| Red Robin Gourmet Burgers | $1.21 billion | 0.14 | -$23.28 million | ($1.69) | -5.39 |
Red Robin Gourmet Burgers has higher revenue and earnings than Genius Sports. Genius Sports is trading at a lower price-to-earnings ratio than Red Robin Gourmet Burgers, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Genius Sports and Red Robin Gourmet Burgers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genius Sports | 1 | 3 | 15 | 1 | 2.80 |
| Red Robin Gourmet Burgers | 2 | 0 | 2 | 0 | 2.00 |
Genius Sports presently has a consensus price target of $11.25, suggesting a potential upside of 76.44%. Red Robin Gourmet Burgers has a consensus price target of $8.33, suggesting a potential downside of 8.53%. Given Genius Sports’ stronger consensus rating and higher probable upside, equities analysts plainly believe Genius Sports is more favorable than Red Robin Gourmet Burgers.
Profitability
This table compares Genius Sports and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genius Sports | -22.99% | -23.83% | -12.68% |
| Red Robin Gourmet Burgers | -2.55% | N/A | -2.65% |
Summary
Red Robin Gourmet Burgers beats Genius Sports on 8 of the 15 factors compared between the two stocks.
About Genius Sports
Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. It offers technology infrastructure for the collection, integration, and distribution of live data of sports leagues; streaming solutions comprising technology, automatic production, and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as a full suite of online and offline educational and consultancy services. The company also provides live sports data collection; pre-game and in-game odds feeds; risk management services, including customer profiling, monitoring of incoming bets, automated acceptance and rejection of bets, and limit setting; live streaming services; creation, delivery, and optimization of digital marketing campaigns, such as data-driven personalized ad creative; and fan engagement widgets for digital publishers that offer live game statistics and betting-related content. The company was founded in 2001 and is headquartered in London, the United Kingdom.
About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.
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