Inspired Entertainment (NASDAQ:INSE) versus Six Flags Entertainment (NYSE:FUN) Head-To-Head Contrast

Six Flags Entertainment (NYSE:FUN) and Inspired Entertainment (NASDAQ:INSE) 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 analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Six Flags Entertainment and Inspired Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Six Flags Entertainment	2	6	6	0	2.29
Inspired Entertainment	1	2	4	0	2.43

Six Flags Entertainment presently has a consensus target price of $14.85, suggesting a potential upside of 37.73%. Inspired Entertainment has a consensus target price of $9.81, suggesting a potential upside of 147.17%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Inspired Entertainment is more favorable than Six Flags Entertainment.

Institutional & Insider Ownership

64.7% of Six Flags Entertainment shares are owned by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are owned by institutional investors. 2.1% of Six Flags Entertainment shares are owned by company insiders. Comparatively, 14.4% of Inspired Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Six Flags Entertainment and Inspired Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Six Flags Entertainment	-57.25%	7.43%	0.38%
Inspired Entertainment	-3.34%	-30.08%	0.92%

Valuation and Earnings

This table compares Six Flags Entertainment and Inspired Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Six Flags Entertainment	$3.10 billion	0.36	-$1.60 billion	($9.14)	-1.18
Inspired Entertainment	$304.10 million	0.34	-$17.00 million	($0.26)	-15.27

Inspired Entertainment has lower revenue, but higher earnings than Six Flags Entertainment. Inspired Entertainment is trading at a lower price-to-earnings ratio than Six Flags Entertainment, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Six Flags Entertainment has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Summary

Inspired Entertainment beats Six Flags Entertainment on 9 of the 14 factors compared between the two stocks.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

About Inspired Entertainment

Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.