Glu Mobile (NASDAQ:GLUU) and TSR (NASDAQ:TSRI) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.
Institutional and Insider Ownership
57.7% of Glu Mobile shares are owned by institutional investors. Comparatively, 9.6% of TSR shares are owned by institutional investors. 6.8% of Glu Mobile shares are owned by company insiders. Comparatively, 0.9% of TSR shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Glu Mobile and TSR’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Glu Mobile||$366.56 million||3.51||-$13.20 million||($0.08)||-110.63|
TSR has lower revenue, but higher earnings than Glu Mobile.
This is a breakdown of recent recommendations and price targets for Glu Mobile and TSR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Glu Mobile presently has a consensus price target of $9.60, suggesting a potential upside of 8.47%. Given Glu Mobile’s higher probable upside, research analysts clearly believe Glu Mobile is more favorable than TSR.
Volatility and Risk
Glu Mobile has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, TSR has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
This table compares Glu Mobile and TSR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Glu Mobile beats TSR on 8 of the 11 factors compared between the two stocks.
About Glu Mobile
Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles primarily in four genres, including home décor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, Blood & Glory, Contract Killer, Cooking Dash, Deer Hunter, Diner Dash, Eternity Warriors, Frontline Commando, Gun Bros, QuizUp, and Tap Sports. The company also creates games based on third-party licensed brands, such as Kim Kardashian: Hollywood, MLB Tap Sports Baseball, and Restaurant Dash with Gordon Ramsay. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was founded in 2001 and is headquartered in San Francisco, California.
TSR, Inc. provides contract computer programming services in the New York metropolitan area, New England, and the Mid-Atlantic region. It offers technical computer personnel to supplement the in-house information technology capabilities of its customers in the areas of .net and java application development, android and IOS mobile application platform development, project management, IT security, cloud development and architecture, UI design and development, network infrastructure and support, and database development and administration, as well as provides business analysts. The company primarily serves vendor management companies, as well as customers in the financial services business. TSR, Inc. was founded in 1969 and is based in Hauppauge, New York.
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