Reviewing NeoGames (NASDAQ:NGMS) and TKO Group (NYSE:TKO)
by Amy Steele · The Cerbat GemNeoGames (NASDAQ:NGMS – Get Free Report) and TKO Group (NYSE:TKO – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and price targets for NeoGames and TKO Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeoGames | 0 | 5 | 0 | 0 | 2.00 |
| TKO Group | 0 | 3 | 11 | 0 | 2.79 |
NeoGames currently has a consensus price target of $29.50, indicating a potential upside of 0.92%. TKO Group has a consensus price target of $108.31, indicating a potential upside of 10.52%. Given TKO Group’s stronger consensus rating and higher possible upside, analysts clearly believe TKO Group is more favorable than NeoGames.
Risk & Volatility
NeoGames has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, TKO Group has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.
Insider and Institutional Ownership
29.7% of NeoGames shares are held by institutional investors. Comparatively, 89.8% of TKO Group shares are held by institutional investors. 27.8% of NeoGames shares are held by company insiders. Comparatively, 38.9% of TKO Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares NeoGames and TKO Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeoGames | $191.54 million | 5.11 | -$18.28 million | ($0.54) | -54.13 |
| TKO Group | $1.68 billion | 10.06 | $208.18 million | $0.68 | 144.12 |
TKO Group has higher revenue and earnings than NeoGames. NeoGames is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NeoGames and TKO Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NeoGames | -9.54% | 9.15% | 2.80% |
| TKO Group | 3.02% | 3.11% | 2.12% |
Summary
TKO Group beats NeoGames on 10 of the 13 factors compared between the two stocks.
About NeoGames
NeoGames S.A. provides iLottery solutions worldwide. The company offers various technology platforms, a range of value-added services, and a game studio that provides a portfolio of games through personal computers, smartphones, and handheld devices. It also develops and operates online lotteries and games that allows lottery operators to distribute lottery products through online sales channels using the company's technology. In addition, the company offers software development and platform services; and regulation and compliance, payment processing, risk management, player relationship management, and player value optimization services. The company was incorporated in 2014 and is headquartered in Tel Aviv, Israel.
About TKO Group
TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.