Critical Analysis: The Stars Group (NASDAQ:TSG) and Its Competitors

The Stars Group (NASDAQ: TSG) is one of 44 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its rivals? We will compare The Stars Group to related companies based on the strength of its profitability, dividends, institutional ownership, analyst recommendations, risk, valuation and earnings.

Risk and Volatility

The Stars Group has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, The Stars Group’s rivals have a beta of 1.41, indicating that their average share price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for The Stars Group and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Stars Group 0 1 1 0 2.50
The Stars Group Competitors 509 1909 4641 230 2.63

The Stars Group currently has a consensus target price of $29.50, indicating a potential upside of 0.68%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 6.11%. Given The Stars Group’s rivals stronger consensus rating and higher probable upside, analysts clearly believe The Stars Group has less favorable growth aspects than its rivals.

Profitability

This table compares The Stars Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Stars Group 19.74% 21.78% 8.54%
The Stars Group Competitors -16.11% -45.92% -1.15%

Institutional & Insider Ownership

72.4% of The Stars Group shares are owned by institutional investors. Comparatively, 49.2% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 14.7% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares The Stars Group and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
The Stars Group $1.31 billion $259.23 million 13.02
The Stars Group Competitors $6.96 billion $964.57 million 40.63

The Stars Group’s rivals have higher revenue and earnings than The Stars Group. The Stars Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

The Stars Group rivals beat The Stars Group on 8 of the 13 factors compared.

The Stars Group Company Profile

The Stars Group Inc. provides technology-based products and services to gaming and interactive entertainment industries in Canada and internationally. It owns and operates gaming and related interactive entertainment businesses under the PokerStars, PokerStars Casino, BetStars, Full Tilt, the PokerStars Players No Limit Hold'em Championship, European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker Tour, PokerStars Festival, and PokerStars MEGASTACK live poker tour and event brands, The company was formerly known as Amaya, Inc. and changed its name to The Stars Group Inc. in August 2017. The Stars Group Inc. was founded in 2004 and is headquartered in Toronto, Canada.

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