Comparing DouYu International (NASDAQ:DOYU) and Gamehaus (NASDAQ:GMHS)

Gamehaus (NASDAQ:GMHS) and DouYu International (NASDAQ:DOYU) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

63.7% of Gamehaus shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 27.7% of Gamehaus shares are held by company insiders. Comparatively, 17.3% of DouYu International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Gamehaus and DouYu International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gamehaus	N/A	N/A	N/A
DouYu International	N/A	N/A	N/A

Valuation and Earnings

This table compares Gamehaus and DouYu International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gamehaus	$104.65 million	0.34	$4.82 million	$0.09	7.41
DouYu International	$3.62 billion	0.03	-$4.83 million	($0.16)	-22.88

Gamehaus has higher earnings, but lower revenue than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than Gamehaus, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Gamehaus and DouYu International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gamehaus	1	0	0	0	1.00
DouYu International	1	1	0	0	1.50

DouYu International has a consensus target price of $5.00, indicating a potential upside of 36.61%. Given DouYu International’s stronger consensus rating and higher possible upside, analysts clearly believe DouYu International is more favorable than Gamehaus.

Volatility and Risk

Gamehaus has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Summary

Gamehaus beats DouYu International on 6 of the 10 factors compared between the two stocks.

About Gamehaus

Gamehaus Holdings Inc. is a mobile game developer and publisher. Gamehaus Holdings Inc. is headquartered in Beijing, China.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.