Slam (SLAM) and Its Competitors Critical Review

Slam (NASDAQ:SLAM) is one of 33 publicly-traded companies in the “Communication services, not elsewhere classified” industry, but how does it compare to its peers? We will compare Slam to similar companies based on the strength of its earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Slam and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Slam	N/A	-11.70%	2.36%
Slam Competitors	-488.40%	-75.93%	-6.69%

Valuation and Earnings

This table compares Slam and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Slam	N/A	$4.59 million	101.27
Slam Competitors	$2.60 billion	-$289.90 million	9.76

Slam’s peers have higher revenue, but lower earnings than Slam. Slam is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

87.3% of Slam shares are held by institutional investors. Comparatively, 48.3% of shares of all “Communication services, not elsewhere classified” companies are held by institutional investors. 0.2% of Slam shares are held by insiders. Comparatively, 29.4% of shares of all “Communication services, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Slam and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Slam	0	0	0	0	N/A
Slam Competitors	124	279	451	17	2.41

As a group, “Communication services, not elsewhere classified” companies have a potential upside of 41.12%. Given Slam’s peers higher possible upside, analysts clearly believe Slam has less favorable growth aspects than its peers.

Risk and Volatility

Slam has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Slam’s peers have a beta of -14.81, suggesting that their average stock price is 1,581% less volatile than the S&P 500.

Summary

Slam beats its peers on 7 of the 10 factors compared.

About Slam

Slam Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or related business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in New York, New York.