Analyzing Enthusiast Gaming (NASDAQ:EGLX) and WOWI (OTCMKTS:WOWU)

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Enthusiast Gaming (NASDAQ:EGLX) and WOWI (OTCMKTS:WOWU) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Insider and Institutional Ownership

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0.1% of Enthusiast Gaming shares are owned by institutional investors. 41.0% of WOWI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enthusiast Gaming and WOWI, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enthusiast Gaming 0 0 4 0 3.00
WOWI 0 0 0 0 N/A

Enthusiast Gaming currently has a consensus target price of $9.63, suggesting a potential upside of 112.94%. Given Enthusiast Gaming’s higher possible upside, equities research analysts plainly believe Enthusiast Gaming is more favorable than WOWI.

Profitability

This table compares Enthusiast Gaming and WOWI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enthusiast Gaming -32.89% -23.44% -17.03%
WOWI N/A N/A N/A

Earnings and Valuation

This table compares Enthusiast Gaming and WOWI’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enthusiast Gaming $54.47 million 9.61 -$20.05 million ($0.24) -18.83
WOWI N/A N/A N/A N/A N/A

WOWI has lower revenue, but higher earnings than Enthusiast Gaming.

About Enthusiast Gaming

Enthusiast Gaming Holdings Inc. engages in the media, content, entertainment, and esports businesses the United States, Canada, and internationally. The company operates an online network of approximately 100 gaming related websites; owns and operates Enthusiast Gaming Live Expo, a video-gaming expo; provides management and support services to players involved in professional gaming; and owns and manages esports teams, which cover games comprising Call of Duty, Madden, Fortnite, Overwatch, Apex, and Valorant; and produces and programs approximately 30 weekly shows across AVOD and OTT channels, and represents approximately 500 gaming influencers across YouTube and Twitch. It also operates Luminosity Gaming, an eSports franchise; and hosts other gaming events. The company is headquartered in Toronto, Canada.

About WOWI

WOWI, Inc. engages in the business of licensing technology and intellectual property to operators and business in the legal cannabis industry nationally. It also engages in packaging & labeling, lease equipment, and lease of real property. The company was founded in August 1987 and is headquartered in Centennial, CO.