GAN (NASDAQ:GAN) versus HUYA (NYSE:HUYA) Head-To-Head Analysis

GAN (NASDAQ:GAN) and HUYA (NYSE:HUYA) 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 risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Volatility and Risk

GAN has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, HUYA has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Institutional and Insider Ownership

16.7% of GAN shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 8.5% of GAN shares are owned by insiders. Comparatively, 1.2% of HUYA shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GAN	-18.48%	-323.71%	-27.66%
HUYA	-2.69%	0.53%	0.43%

Analyst Recommendations

This is a breakdown of recent recommendations for GAN and HUYA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAN	0	1	0	0	2.00
HUYA	0	1	3	0	2.75

HUYA has a consensus price target of $6.93, suggesting a potential upside of 22.50%. Given HUYA’s stronger consensus rating and higher possible upside, analysts clearly believe HUYA is more favorable than GAN.

Earnings and Valuation

This table compares GAN and HUYA”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	0.63	-$34.44 million	($0.90)	-1.96
HUYA	$6.24 billion	0.21	-$28.81 million	($0.10)	-56.60

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

Summary

HUYA beats GAN on 10 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 HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.