Head-To-Head Survey: National CineMedia (NASDAQ:NCMI) versus Gambling.com Group (NASDAQ:GAMB)

Gambling.com Group (NASDAQ:GAMB) and National CineMedia (NASDAQ:NCMI) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

Gambling.com Group has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, National CineMedia has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Insider and Institutional Ownership

72.3% of Gambling.com Group shares are owned by institutional investors. Comparatively, 69.5% of National CineMedia shares are owned by institutional investors. 57.9% of Gambling.com Group shares are owned by insiders. Comparatively, 1.4% of National CineMedia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Gambling.com Group and National CineMedia”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gambling.com Group	$127.18 million	1.85	$30.68 million	$0.40	16.48
National CineMedia	$236.30 million	1.64	-$22.30 million	($0.15)	-27.50

Gambling.com Group has higher earnings, but lower revenue than National CineMedia. National CineMedia is trading at a lower price-to-earnings ratio than Gambling.com Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Gambling.com Group and National CineMedia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gambling.com Group	1	2	7	0	2.60
National CineMedia	2	2	3	0	2.14

Gambling.com Group currently has a consensus price target of $15.75, suggesting a potential upside of 139.00%. National CineMedia has a consensus price target of $6.60, suggesting a potential upside of 60.00%. Given Gambling.com Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gambling.com Group is more favorable than National CineMedia.

Profitability

This table compares Gambling.com Group and National CineMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gambling.com Group	9.66%	38.04%	20.75%
National CineMedia	-8.62%	-3.51%	-2.58%

Summary

Gambling.com Group beats National CineMedia on 12 of the 14 factors compared between the two stocks.

About Gambling.com Group

Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.

About National CineMedia

National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.