Scientific Games (NASDAQ:SGMS) and Borqs Technologies (NASDAQ:BRQS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Risk & Volatility
Scientific Games has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Borqs Technologies has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Scientific Games and Borqs Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Scientific Games presently has a consensus target price of $38.63, suggesting a potential upside of 83.75%. Given Scientific Games’ stronger consensus rating and higher probable upside, equities analysts clearly believe Scientific Games is more favorable than Borqs Technologies.
Earnings and Valuation
This table compares Scientific Games and Borqs Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Scientific Games||$3.08 billion||0.63||-$242.30 million||($2.23)||-9.43|
|Borqs Technologies||$154.31 million||0.97||-$12.56 million||N/A||N/A|
Borqs Technologies has lower revenue, but higher earnings than Scientific Games.
This table compares Scientific Games and Borqs Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
66.2% of Scientific Games shares are held by institutional investors. Comparatively, 23.7% of Borqs Technologies shares are held by institutional investors. 40.5% of Scientific Games shares are held by insiders. Comparatively, 7.2% of Borqs Technologies shares are held by 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.
About Scientific Games
Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, and interactive gaming industries worldwide. The company's Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals (VLTs), conversion game kits, and spare parts; slot, casino, and table-management systems; table products, including shufflers; and perpetual licenses to proprietary table games. It also leases VLTs and electronic table games, game themes, or other licensing arrangements; and provides installation and support services for casino management systems, such as ongoing hardware maintenance and software upgrade services. The company's Lottery segment designs, prints, and sells instant lottery games, as well as offers instant game-related services comprising game design, sales and marketing support, and inventory management; and provides lottery systems, including hardware, software, and instant game validation systems. It is also involved in supplying player loyalty programs, as well as providing merchandising services and interactive marketing campaigns; and sublicensing brands for lottery products, as well as providing lottery-related promotional products. In addition, this segment provides software, hardware, and related services for lottery operations, including draw systems, instant ticket validation systems, and sports wagering and keno systems; and lottery systems software maintenance and support services. The company's Interactive segment operates social casino-style, slot-based, and bingo-based games through Facebook, iOS, Android, and various other desktop and mobile platforms; and provides content through remote game server technology, to licensed online casino operators on desktop and mobile platforms, as well as play-for-fun and play-for-free white-label gaming for land-based casinos. Scientific Games Corporation was founded in 1984 and is headquartered in Las Vegas, Nevada.
About Borqs Technologies
Borqs Technologies, Inc. engages in the provision of android platform solutions, hardware product sales and mobile virtual network operator services. It operates through two segments: Yuantel and Connected Solutions. The Connected Solutions segment develops wireless smart connected devices and cloud solutions. The MVNO serves all the domestic China market, operating under the brand name Yuantel. Borqs Technologies was founded by Pat Sek Yuen Chan & Xiao Bo Li on July 1, 2015 and is headquartered in Beijing, China.
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