Critical Analysis: GAN (NASDAQ:GAN) vs. Eventbrite (NYSE:EB)

GAN (NASDAQ:GAN) and Eventbrite (NYSE:EB) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for GAN and Eventbrite, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAN	0	1	0	0	2.00
Eventbrite	0	2	5	0	2.71

Eventbrite has a consensus price target of $9.93, indicating a potential upside of 91.86%. Given Eventbrite’s stronger consensus rating and higher probable upside, analysts clearly believe Eventbrite is more favorable than GAN.

Institutional & Insider Ownership

16.7% of GAN shares are owned by institutional investors. Comparatively, 91.6% of Eventbrite shares are owned by institutional investors. 8.5% of GAN shares are owned by company insiders. Comparatively, 21.5% of Eventbrite shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares GAN and Eventbrite’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAN	$129.42 million	0.54	-$34.44 million	($0.90)	-1.70
Eventbrite	$326.13 million	1.54	-$26.48 million	($0.19)	-27.24

Eventbrite has higher revenue and earnings than GAN. Eventbrite is trading at a lower price-to-earnings ratio than GAN, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

GAN has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, Eventbrite has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500.

Profitability

This table compares GAN and Eventbrite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GAN	-32.10%	-323.71%	-35.77%
Eventbrite	-5.47%	-10.00%	-1.95%

Summary

Eventbrite beats GAN on 13 of the 14 factors compared between the two stocks.

About GAN

GAN Limited operates as a business-to-business (B2B) supplier of enterprise software-as-a-service solutions to online casino gaming and sports betting applications in the United States, Europe, Latin America, and internationally. It operates through two segments: B2B and B2C. The company provides and licenses GameSTACK, an internet gaming platform that provides turnkey technology solution for regulated real-money internet gambling, online sports betting, and virtual simulated gaming. It offers Real Money iGaming, GAN sports retail and online sportsbook, super remote gaming server, Simulated Gaming, iSight Back Office, iBridge Framework, and development services; development, marketing, and customer support services designed to fast-track deployments and provide ongoing operational support services. In addition, the company offers online sports betting, online casino game, and peer-to-peer poker services through its coolbet.com website. It serves regional operators and individual tribal casino operators. GAN Limited was incorporated in 1999 and is headquartered in Irvine, California.

About Eventbrite

Eventbrite, Inc. operates a two-sided marketplace that provides self-service ticketing and marketing tools for event creators in the United States and internationally. Its platform integrates components needed to plan, promote, and produce live events that allow creators to reduce friction and costs, enhance reach, and drive ticket sales. The company was formerly known as Mollyguard Corporation and changed its name to Eventbrite, Inc. in 2009. Eventbrite, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.