The Wendy's (NASDAQ:WEN) and Simplicity Esports and Gaming (OTCMKTS:WINR) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Valuation & Earnings
This table compares The Wendy's and Simplicity Esports and Gaming's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| The Wendy's | $1.71 billion | 2.96 | $136.94 million | $0.59 | 38.64 |
| Simplicity Esports and Gaming | $860,000.00 | 20.28 | $-2,620,000.00 | N/A | N/A |
The Wendy's has higher revenue and earnings than Simplicity Esports and Gaming.
Risk & Volatility
The Wendy's has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Simplicity Esports and Gaming has a beta of -0.38, meaning that its stock price is 138% less volatile than the S&P 500.
Institutional and Insider Ownership
69.4% of The Wendy's shares are held by institutional investors. 20.9% of The Wendy's shares are held by company insiders. Comparatively, 28.1% of Simplicity Esports and Gaming shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares The Wendy's and Simplicity Esports and Gaming's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| The Wendy's | 6.70% | 21.11% | 2.20% |
| Simplicity Esports and Gaming | -302.98% | -51.64% | -33.42% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for The Wendy's and Simplicity Esports and Gaming, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| The Wendy's | 0 | 8 | 11 | 0 | 2.58 |
| Simplicity Esports and Gaming | 0 | 0 | 0 | 0 | N/A |
The Wendy's currently has a consensus price target of $25.3846, indicating a potential upside of 11.34%. Given The Wendy's' higher possible upside, equities analysts plainly believe The Wendy's is more favorable than Simplicity Esports and Gaming.
Summary
The Wendy's beats Simplicity Esports and Gaming on 9 of the 11 factors compared between the two stocks.
