Reviewing Inspired Entertainment (NASDAQ:INSE) & eGain (NASDAQ:EGAN)
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Inspired Entertainment (NASDAQ:INSE – Get Rating) and eGain (NASDAQ:EGAN – Get Rating) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Profitability
This table compares Inspired Entertainment and eGain’s net margins, return on equity and return on assets.
Insider and Institutional Ownership89.8% of Inspired Entertainment shares are owned by institutional investors. Comparatively, 54.0% of eGain shares are owned by institutional investors. 12.3% of Inspired Entertainment shares are owned by company insiders. Comparatively, 33.3% of eGain shares are owned 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.
Valuation & Earnings
This table compares Inspired Entertainment and eGain’s revenue, earnings per share (EPS) and valuation.
eGain has lower revenue, but higher earnings than Inspired Entertainment. Inspired Entertainment is trading at a lower price-to-earnings ratio than eGain, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Inspired Entertainment has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, eGain has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Inspired Entertainment and eGain, as provided by MarketBeat.
Inspired Entertainment presently has a consensus target price of $18.00, indicating a potential upside of 54.91%. Given Inspired Entertainment’s higher probable upside, analysts plainly believe Inspired Entertainment is more favorable than eGain.
Summary
eGain beats Inspired Entertainment on 8 of the 13 factors compared between the two stocks.
Inspired Entertainment Company Profile (Get Rating)
Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. The company operates through four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games that include greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Football, V-Play Basketball, Virtual Grand National, and V-Play NFLA names. The Interactive segment provides a range of premium random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
eGain Company Profile (Get Rating)
eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides unified cloud software solutions to automate, augment, and orchestrate customer engagement. It also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting, implementation, and training services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.
