Inspired Entertainment (NASDAQ:INSE – Get Free Report) and Eightco (NASDAQ:OCTO – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
Inspired Entertainment has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Eightco has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
Profitability
This table compares Inspired Entertainment and Eightco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inspired Entertainment | 18.78% | -1,176.67% | 15.10% |
| Eightco | -21.43% | -91.96% | -19.64% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inspired Entertainment | $309.90 million | 0.82 | $64.80 million | $1.99 | 4.72 |
| Eightco | $43.87 million | 0.11 | $710,000.00 | ($3.02) | -0.53 |
Inspired Entertainment has higher revenue and earnings than Eightco. Eightco is trading at a lower price-to-earnings ratio than Inspired Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Inspired Entertainment and Eightco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspired Entertainment | 0 | 3 | 4 | 1 | 2.75 |
| Eightco | 0 | 0 | 0 | 0 | 0.00 |
Inspired Entertainment presently has a consensus target price of $14.00, indicating a potential upside of 49.09%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Inspired Entertainment is more favorable than Eightco.
Insider & Institutional Ownership
77.4% of Inspired Entertainment shares are owned by institutional investors. Comparatively, 12.9% of Eightco shares are owned by institutional investors. 13.1% of Inspired Entertainment shares are owned by company insiders. Comparatively, 13.6% of Eightco shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Inspired Entertainment beats Eightco on 13 of the 15 factors compared between the two stocks.
About Inspired Entertainment
Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
About Eightco
Eightco Holdings Inc. provides inventory management and corrugated custom packaging solutions in North America and Europe. It manufactures and sells custom packaging solutions for a various product; and provides and resells bitcoin mining equipment and co-location services. The company was formerly known as Cryptyde, Inc. and changed its name to Eightco Holdings Inc. in April 2023. Eightco Holdings Inc. was incorporated in 1966 and is headquartered in Easton, Pennsylvania.
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