Contrasting GameSquare (NASDAQ:GAME) and John Wiley & Sons (NYSE:WLY)

John Wiley & Sons (NYSE:WLY) and GameSquare (NASDAQ:GAME) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Risk and Volatility

John Wiley & Sons has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, GameSquare has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for John Wiley & Sons and GameSquare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John Wiley & Sons	0	2	0	0	2.00
GameSquare	1	1	1	0	2.00

Profitability

This table compares John Wiley & Sons and GameSquare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John Wiley & Sons	11.90%	27.99%	8.16%
GameSquare	-96.06%	7.97%	3.14%

Valuation and Earnings

This table compares John Wiley & Sons and GameSquare”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Wiley & Sons	$1.68 billion	1.56	$221.62 million	$3.78	13.67
GameSquare	$62.78 million	0.55	-$40.10 million	($4.96)	-0.53

John Wiley & Sons has higher revenue and earnings than GameSquare. GameSquare is trading at a lower price-to-earnings ratio than John Wiley & Sons, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

73.9% of John Wiley & Sons shares are owned by institutional investors. Comparatively, 64.2% of GameSquare shares are owned by institutional investors. 17.6% of John Wiley & Sons shares are owned by company insiders. Comparatively, 9.4% of GameSquare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

John Wiley & Sons pays an annual dividend of $1.43 per share and has a dividend yield of 2.8%. GameSquare pays an annual dividend of $1.02 per share and has a dividend yield of 38.8%. John Wiley & Sons pays out 37.8% of its earnings in the form of a dividend. GameSquare pays out -20.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Wiley & Sons has increased its dividend for 26 consecutive years. GameSquare is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

John Wiley & Sons beats GameSquare on 11 of the 15 factors compared between the two stocks.

About John Wiley & Sons

John Wiley & Sons, Inc. engages in the provision of research and learning materials. It operates through the following segments: Research, Learning, and Held for Sale or Sold. The Research segment consists of research publishing and research solutions. The Learning segment includes academic and professional reporting lines and consists of publishing and related knowledge solutions. The Held for Sale or Sold segment offers businesses held-for-sale including Wiley Edge and CrossKnowledge, University Services and Tuition Manager, and Test Prep and Advancement Courses. The company was founded by Charles Wiley in 1807 and is headquartered in Hoboken, NJ.

About GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.