Contrasting DouYu International (NASDAQ:DOYU) and GREE (OTCMKTS:GREZF)

DouYu International (NASDAQ:DOYU) and GREE (OTCMKTS:GREZF) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Earnings & Valuation

This table compares DouYu International and GREE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$4.04 billion	0.04	-$42.03 million	($0.88)	-6.49
GREE	N/A	N/A	N/A	N/A	N/A

GREE has lower revenue, but higher earnings than DouYu International.

Volatility and Risk

DouYu International has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, GREE has a beta of -0.27, indicating that its share price is 127% less volatile than the S&P 500.

Profitability

This table compares DouYu International and GREE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DouYu International	-4.74%	-1.57%	-1.07%
GREE	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for DouYu International and GREE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	1	1	0	0	1.50
GREE	0	0	0	0	0.00

DouYu International presently has a consensus price target of $7.00, indicating a potential upside of 22.59%. Given DouYu International’s stronger consensus rating and higher probable upside, equities analysts plainly believe DouYu International is more favorable than GREE.

Insider and Institutional Ownership

17.9% of DouYu International shares are held by institutional investors. 17.3% of DouYu International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

DouYu International beats GREE on 6 of the 9 factors compared between the two stocks.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.

About GREE

GREE, Inc. operates Internet entertainment, investment, and incubation business in Japan and internationally. It develops and operates various smartphone games under the GREE, WFS, Pokelabo, and GREE Entertainment brands; and engages with anime production committees to develop original contents domestically and internationally. The company also offers REALITY, a metaverse for smartphone for individuals to turn themselves into digital avatar and stream various contents, and VTuber business that allows streamers to host live digital performances, play games, and chat services; and REALITY XR cloud, a cloud solution platform that enables corporate customers to build their own metaverse using 3DCG and XR technologies, as well as develop and publish blockchain games. In addition, it provides Marketing DX a service designed to accompany the evolution of client companies and business growth; Operation DX that manages customer relationships, quality control, and risks associated with business development; and DDM, an analytics platform to restructures disorganized internal data by incorporating real-time visualization. Further, the company offers aumo that provides travel and lifestyle information content including latest information on restaurants, shopping, and travel, as well as user reviews on various stores and other facilities; and support for creation of sales promotion pages, access analysis, and post and dissemination of store and facility information. Additionally, it provides jobda for job-related information; LIMIA, an on-;one magazines that features home and living lifestyle content; MINE, an on-line video magazine that features women's fashion, beauty and lifestyle content; and ARINE, a on-line magazine for young women. The company also offers DADAN to deliver the entertainment of manga; STUDIO DADAN to plan and produce manga content; and invests in internet and IT fields. GREE, Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan.