Manchester United (MANU) versus Shoal Games (SGLDF) Critical Contrast

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Manchester United (NYSE:MANU) and Shoal Games (OTCMKTS:SGLDF) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Manchester United and Shoal Games, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manchester United 0 3 1 0 2.25
Shoal Games 0 0 0 0 N/A

Manchester United currently has a consensus target price of $23.67, indicating a potential upside of 8.46%. Given Manchester United’s higher possible upside, equities research analysts clearly believe Manchester United is more favorable than Shoal Games.

Profitability

This table compares Manchester United and Shoal Games’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manchester United -6.30% 3.15% 1.00%
Shoal Games -3,190.70% -396.10% -211.82%

Dividends

Manchester United pays an annual dividend of $0.18 per share and has a dividend yield of 0.8%. Shoal Games does not pay a dividend. Manchester United pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manchester United has increased its dividend for 2 consecutive years.

Risk & Volatility

Manchester United has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Shoal Games has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Valuation & Earnings

This table compares Manchester United and Shoal Games’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manchester United $794.68 million 1.10 -$50.20 million $0.14 155.86
Shoal Games $90,000.00 286.53 -$1.74 million N/A N/A

Shoal Games has lower revenue, but higher earnings than Manchester United.

Insider & Institutional Ownership

93.0% of Manchester United shares are owned by institutional investors. 24.4% of Shoal Games shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Manchester United beats Shoal Games on 10 of the 14 factors compared between the two stocks.

Manchester United Company Profile

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. The company operates Manchester United Football Club, a professional football club. It develops marketing and sponsorship relationships with international and regional companies to leverage its brand. The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company's partners' wholesale distribution channels. In addition, it distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, the company offers a direct to consumer subscription mobile application in 167 territories; and operates Old Trafford, a sports venue with 74,989 seats. Manchester United plc was founded in 1878 and is based in Manchester, the United Kingdom. Manchester United plc is a subsidiary of Red Football LLC.

Shoal Games Company Profile

Shoal Games Ltd. develops and sells consumer mobile software products and games in Anguilla and internationally. It focuses on the development and marketing of a platform of interactive games for families and children. The company's products include Rooplay, a platform of educational and entertainment games; Garfield's Bingo, a bingo game; and Trophy Bingo, live through mobile platforms. The company was formerly known as Bingo.com, Ltd. and changed its name to Shoal Games Ltd. in January 2015. Shoal Games Ltd. was founded in 1987 and is based in The Valley, Anguilla.

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