Analyzing Inspired Entertainment (INSE) & Its Rivals

Inspired Entertainment (NASDAQ: INSE) is one of 186 public companies in the “Prepackaged software” industry, but how does it contrast to its competitors? We will compare Inspired Entertainment to similar companies based on the strength of its profitability, earnings, dividends, risk, analyst recommendations, institutional ownership and valuation.

Risk & Volatility

Inspired Entertainment has a beta of -1.13, suggesting that its stock price is 213% less volatile than the S&P 500. Comparatively, Inspired Entertainment’s competitors have a beta of -16.78, suggesting that their average stock price is 1,778% less volatile than the S&P 500.

Earnings and Valuation

This table compares Inspired Entertainment and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Inspired Entertainment $122.54 million -$49.11 million -2.44
Inspired Entertainment Competitors $1.68 billion $254.70 million -14.37

Inspired Entertainment’s competitors have higher revenue and earnings than Inspired Entertainment. Inspired Entertainment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Inspired Entertainment and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inspired Entertainment 0 0 0 0 N/A
Inspired Entertainment Competitors 1129 5788 11934 494 2.61

As a group, “Prepackaged software” companies have a potential upside of 1.87%. Given Inspired Entertainment’s competitors higher possible upside, analysts clearly believe Inspired Entertainment has less favorable growth aspects than its competitors.

Profitability

This table compares Inspired Entertainment and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inspired Entertainment -16.34% -7,330.75% -10.50%
Inspired Entertainment Competitors -6.97% -112.34% -2.53%

Insider and Institutional Ownership

33.4% of Inspired Entertainment shares are held by institutional investors. Comparatively, 58.1% of shares of all “Prepackaged software” companies are held by institutional investors. 21.8% of Inspired Entertainment shares are held by insiders. Comparatively, 21.7% of shares of all “Prepackaged software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Inspired Entertainment competitors beat Inspired Entertainment on 7 of the 10 factors compared.

About Inspired Entertainment

Inspired Entertainment, Inc., a games technology company, focuses on the development and sale of software systems and digital terminals worldwide. The company operates through two segments, Service Based Gaming (SBG) and Virtual Sports. The SBG segment designs, develops, markets, and distributes a portfolio of products and services through its digital network architecture to betting offices, casinos, gaming hall and bingo operators, and lotteries, as well as government affiliated and licensed operators. The Virtual Sports segment offers gaming software and content to regulated betting operators, lotteries, casinos, online operators, and other gaming and lottery operators. It operates approximately 25,000 digital gaming terminals; and supplies its virtual sports products in approximately 35,000 venues and approximately 100 Websites. The company was founded in 2002 and is headquartered in London, the United Kingdom.

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