Comparing Inspired Entertainment (NASDAQ:INSE) and Amber Road (NASDAQ:AMBR)

Inspired Entertainment (NASDAQ:INSE) and Amber Road (NYSE:AMBR) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Inspired Entertainment and Amber Road’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inspired Entertainment $141.38 million 1.23 -$14.15 million ($0.62) -12.26
Amber Road $85.17 million 4.45 -$13.60 million ($0.49) -26.63

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

Risk & Volatility

Inspired Entertainment has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Amber Road has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Profitability

This table compares Inspired Entertainment and Amber Road’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inspired Entertainment -18.71% N/A -8.94%
Amber Road -12.49% -33.06% -9.60%

Insider & Institutional Ownership

74.6% of Inspired Entertainment shares are owned by institutional investors. Comparatively, 79.7% of Amber Road shares are owned by institutional investors. 16.7% of Inspired Entertainment shares are owned by insiders. Comparatively, 15.1% of Amber Road shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Inspired Entertainment and Amber Road, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inspired Entertainment 0 0 2 0 3.00
Amber Road 0 3 0 0 2.00

Inspired Entertainment currently has a consensus target price of $10.00, suggesting a potential upside of 31.58%. Amber Road has a consensus target price of $12.95, suggesting a potential downside of 0.77%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, equities analysts clearly believe Inspired Entertainment is more favorable than Amber Road.

Summary

Inspired Entertainment beats Amber Road on 9 of the 14 factors compared between the two stocks.

About Inspired Entertainment

Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies virtual sports and server based gaming worldwide. It designs, develops, markets, and distributes a portfolio of games through its digital network architecture to betting offices, casinos, gaming hall and bingo operators, and regulated operators of lotteries, as well as government affiliated and licensed operators. The company also offers gaming software and content to regulated betting operators, lotteries, casinos, online operators, and other gaming and lottery operators. In addition, it provides end-to-end digital gaming solutions on its proprietary and secure network, which accommodates a range of devices, including land-based gaming machine terminals, as well as mobile devices, such as smartphones and tablets, and online computer applications. The company operates approximately 33,000 digital terminals; and supplies its virtual sports products in approximately 35,000 retail channels and approximately 300 Websites. Inspired Entertainment, Inc. was founded in 2002 and is based in New York, New York.

About Amber Road

Amber Road, Inc. provides cloud-based global trade management (GTM) solutions in the United States and internationally. The company's GTM solutions include modules, such as import management, export management, China trade management, global logistics management, trade agreement management, and supply chain collaboration, as well as professional services, such as assessment, implementation, education and training, and maintenance and support. It provides modules for logistics contract and rate management; supply chain visibility and event management; international trade compliance; and global knowledge trade content database, supply chain collaboration with international factories and vendors, and duty management solutions to importers and exporters, nonvessel owning common carriers (resellers), and ocean carriers. The company offers its solution to various industries comprising chemical/pharmaceutical, high technology/electronics, industrial/manufacturing, logistics, oil and gas, and retail/apparel through a software-as-a-service model. The company was formerly known as Management Dynamics Inc. and changed its name to Amber Road, Inc. in 2011. Amber Road, Inc. was founded in 1990 and is headquartered in East Rutherford, New Jersey.

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