Gambling.com Group (NASDAQ:GRSD – Get Free Report) and Educational Development (NASDAQ:EDUC – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
Profitability
This table compares Gambling.com Group and Educational Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gambling.com Group | -22.36% | 13.87% | 5.33% |
| Educational Development | 8.60% | -18.72% | -14.64% |
Analyst Ratings
This is a summary of current recommendations and price targets for Gambling.com Group and Educational Development, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gambling.com Group | 1 | 3 | 4 | 1 | 2.56 |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
Gambling.com Group presently has a consensus price target of $6.43, indicating a potential upside of 509.34%. Given Gambling.com Group’s stronger consensus rating and higher possible upside, analysts plainly believe Gambling.com Group is more favorable than Educational Development.
Risk & Volatility
Gambling.com Group has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Educational Development has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Insider and Institutional Ownership
72.3% of Gambling.com Group shares are held by institutional investors. Comparatively, 19.6% of Educational Development shares are held by institutional investors. 11.9% of Educational Development shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Gambling.com Group and Educational Development”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gambling.com Group | $165.45 million | 0.22 | -$32.93 million | ($1.04) | -1.01 |
| Educational Development | $20.01 million | 0.44 | $2.33 million | $0.19 | 5.47 |
Educational Development has lower revenue, but higher earnings than Gambling.com Group. Gambling.com Group is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.
Summary
Gambling.com Group beats Educational Development on 8 of the 15 factors compared between the two stocks.
About Gambling.com Group
Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.
About Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
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