Analyzing Inspired Entertainment (INSE) & Its Competitors

Inspired Entertainment (NASDAQ: INSE) is one of 187 public companies in the “Prepackaged software” industry, but how does it weigh in compared to its rivals? We will compare Inspired Entertainment to similar businesses based on the strength of its valuation, profitability, analyst recommendations, institutional ownership, dividends, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Inspired Entertainment and its rivals, 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 1148 5839 12051 503 2.61

As a group, “Prepackaged software” companies have a potential downside of 3.17%. Given Inspired Entertainment’s rivals higher probable upside, analysts plainly believe Inspired Entertainment has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Inspired Entertainment and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Inspired Entertainment $122.54 million -$49.11 million -2.22
Inspired Entertainment Competitors $1.68 billion $254.71 million -15.99

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

Risk & Volatility

Inspired Entertainment has a beta of -0.64, indicating that its share price is 164% less volatile than the S&P 500. Comparatively, Inspired Entertainment’s rivals have a beta of -16.59, indicating that their average share price is 1,759% less volatile than the S&P 500.

Profitability

This table compares Inspired Entertainment and its rivals’ 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 -6.53% -112.53% -2.54%

Insider and Institutional Ownership

33.4% of Inspired Entertainment shares are owned by institutional investors. Comparatively, 58.9% of shares of all “Prepackaged software” companies are owned by institutional investors. 21.8% of Inspired Entertainment shares are owned by insiders. Comparatively, 21.1% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Inspired Entertainment rivals 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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