HUYA (NYSE:HUYA – Get Free Report) and Motorsport Games (NASDAQ:MSGM – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Insider and Institutional Ownership
23.2% of HUYA shares are held by institutional investors. Comparatively, 1.7% of Motorsport Games shares are held by institutional investors. 1.2% of HUYA shares are held by insiders. Comparatively, 4.6% of Motorsport Games shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares HUYA and Motorsport Games”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HUYA | $929.83 million | 0.56 | -$16.10 million | ($0.06) | -38.08 |
| Motorsport Games | $11.30 million | 1.79 | $6.93 million | $0.43 | 11.26 |
Motorsport Games has lower revenue, but higher earnings than HUYA. HUYA is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for HUYA and Motorsport Games, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HUYA | 1 | 1 | 1 | 1 | 2.50 |
| Motorsport Games | 0 | 1 | 0 | 1 | 3.00 |
HUYA presently has a consensus target price of $3.45, suggesting a potential upside of 50.98%. Given HUYA’s higher possible upside, equities analysts clearly believe HUYA is more favorable than Motorsport Games.
Volatility and Risk
HUYA has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.
Profitability
This table compares HUYA and Motorsport Games’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HUYA | -1.59% | 0.20% | 0.14% |
| Motorsport Games | 16.15% | 41.13% | 24.51% |
Summary
Motorsport Games beats HUYA on 10 of the 14 factors compared between the two stocks.
About HUYA
HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.
About Motorsport Games
Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.
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