Comparing GAN (NASDAQ:GAN) & Locafy (NASDAQ:LCFY)

GAN (NASDAQ:GAN) and Locafy (NASDAQ:LCFY) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares GAN and Locafy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAN	$126.74 million	0.66	-$34.44 million	($0.90)	-2.04
Locafy	$4.21 million	1.69	-$2.62 million	($1.87)	-2.98

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

Analyst Recommendations

This is a summary of current ratings and price targets for GAN and Locafy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAN	0	1	0	0	2.00
Locafy	0	0	0	0	N/A

Insider and Institutional Ownership

16.7% of GAN shares are owned by institutional investors. Comparatively, 0.0% of Locafy shares are owned by institutional investors. 8.5% of GAN shares are owned by company insiders. Comparatively, 28.7% of Locafy shares are owned by company 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.

Risk & Volatility

GAN has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GAN	-18.48%	N/A	-27.66%
Locafy	-66.21%	-82.35%	-45.02%

Summary

GAN beats Locafy on 8 of the 11 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 Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.