Comparing GameSquare (NASDAQ:GAME) and Corsair Gaming (NASDAQ:CRSR)

GameSquare (NASDAQ:GAME) and Corsair Gaming (NASDAQ:CRSR) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for GameSquare and Corsair Gaming, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameSquare	2	0	0	0	1.00
Corsair Gaming	1	2	4	0	2.43

Corsair Gaming has a consensus price target of $8.33, suggesting a potential upside of 24.01%. Given Corsair Gaming’s stronger consensus rating and higher probable upside, analysts plainly believe Corsair Gaming is more favorable than GameSquare.

Insider and Institutional Ownership

64.3% of GameSquare shares are owned by institutional investors. Comparatively, 25.7% of Corsair Gaming shares are owned by institutional investors. 5.1% of GameSquare shares are owned by company insiders. Comparatively, 58.4% of Corsair Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

GameSquare has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Corsair Gaming has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GameSquare	-87.56%	-42.48%	-15.43%
Corsair Gaming	0.71%	9.71%	4.97%

Earnings and Valuation

This table compares GameSquare and Corsair Gaming”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameSquare	$45.00 million	0.81	-$40.10 million	($0.59)	-0.66
Corsair Gaming	$1.47 billion	0.49	-$12.47 million	$0.08	84.00

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

Summary

Corsair Gaming beats GameSquare on 11 of the 14 factors compared between the two stocks.

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.

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.