Financial Contrast: Manchester United (MANU) vs. Galaxy Gaming (GLXZ)

Manchester United (NYSE:MANU) and Galaxy Gaming (OTCMKTS:GLXZ) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Volatility and Risk

Manchester United has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Manchester United and Galaxy Gaming’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manchester United -6.61% 3.43% 1.07%
Galaxy Gaming 3.80% 11.06% 3.46%

Dividends

Manchester United pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Galaxy Gaming does not pay a dividend. Manchester United pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manchester United has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Manchester United and Galaxy Gaming, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manchester United 0 3 1 0 2.25
Galaxy Gaming 0 0 0 0 N/A

Manchester United currently has a consensus target price of $23.67, indicating a potential upside of 26.90%. Given Manchester United’s higher probable upside, analysts plainly believe Manchester United is more favorable than Galaxy Gaming.

Institutional and Insider Ownership

84.7% of Manchester United shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Manchester United and Galaxy Gaming’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manchester United $794.68 million 0.94 -$50.20 million $0.14 133.21
Galaxy Gaming $14.86 million 3.92 -$10,000.00 N/A N/A

Galaxy Gaming has lower revenue, but higher earnings than Manchester United.

About Manchester United

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. The company operates Manchester United Football Club, a professional football club. It develops marketing and sponsorship relationships with international and regional companies to leverage its brand. The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company's partners' wholesale distribution channels. In addition, it distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, the company offers a direct to consumer subscription mobile application in 167 territories; and operates Old Trafford, a sports venue with 74,989 seats. Manchester United plc was founded in 1878 and is based in Manchester, the United Kingdom. Manchester United plc is a subsidiary of Red Football LLC.

About Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, manufactures, markets, acquires, and licenses proprietary casino table games and associated technology, platforms, and systems for the gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering schemes added to public domain games, such as poker, baccarat, pai gow poker, craps, and blackjack table games; and premium games, which are stand-alone games with their own unique set of rules and strategies. It offers side bets under the Lucky Ladies, 21+3, and Bonus Craps titles; and premium games under the High Card Flush, Three Card Poker, and Texas Shootout. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers TableMAX e-Table system, an automated, dealer-less, multi-player electronic table game platform; and ancillary equipment. The company markets its products to land-based, riverboat, cruise ship, and Internet gaming companies in North America, the Caribbean, Central America, the British Isles, Europe, and Africa, as well as to cruise ships and Internet gaming sites worldwide. Galaxy Gaming, Inc. is headquartered in Las Vegas, Nevada.

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