Head to Head Review: PENN Entertainment (NASDAQ:PENN) vs. Genius Sports (NYSE:GENI)

Genius Sports (NYSE:GENI) and PENN Entertainment (NASDAQ:PENN) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Genius Sports and PENN Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genius Sports	$669.49 million	2.25	-$111.58 million	($0.63)	-9.69
PENN Entertainment	$6.96 billion	0.34	-$843.10 million	($0.09)	-194.78

Genius Sports has higher earnings, but lower revenue than PENN Entertainment. PENN Entertainment is trading at a lower price-to-earnings ratio than Genius Sports, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Genius Sports has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Profitability

This table compares Genius Sports and PENN Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genius Sports	-18.85%	-22.27%	-9.66%
PENN Entertainment	-0.13%	6.99%	0.92%

Insider and Institutional Ownership

81.9% of Genius Sports shares are held by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are held by institutional investors. 16.6% of Genius Sports shares are held by company insiders. Comparatively, 3.2% of PENN Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Genius Sports and PENN Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genius Sports	2	2	14	1	2.74
PENN Entertainment	1	7	13	0	2.57

Genius Sports currently has a consensus price target of $10.76, suggesting a potential upside of 76.30%. PENN Entertainment has a consensus price target of $23.67, suggesting a potential upside of 35.01%. Given Genius Sports’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Genius Sports is more favorable than PENN Entertainment.

Summary

Genius Sports beats PENN Entertainment on 8 of the 15 factors compared between the two stocks.

About Genius Sports

Genius Sports is a sports technology company that collects, manages and distributes data and video from sporting events. Its technology supports live statistics, scores and other sports content for leagues, teams, broadcasters and betting operators. The company also provides services for sports betting, including official data distribution, trading tools and integrity monitoring. Its media and marketing offerings help sports organizations and brands connect with fans through digital content and targeted advertising.

About PENN Entertainment

PENN Entertainment is a diversified gaming and entertainment company that operates casinos, racetracks and sports betting facilities. Its properties offer casino games, hotel accommodations, dining, live entertainment and other hospitality services, with brands including Hollywood Casino, Ameristar and L’Auberge. The company also offers online sports betting and iCasino products in markets where they are permitted. Its digital operations complement its retail properties and include the PENN Play customer loyalty program.