Sharplink Gaming (NASDAQ:SBET – Get Free Report) and Block (NYSE:XYZ – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Risk and Volatility
Sharplink Gaming has a beta of 11.23, meaning that its share price is 1,023% more volatile than the S&P 500. Comparatively, Block has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500.
Profitability
This table compares Sharplink Gaming and Block’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sharplink Gaming | -3,406.29% | -33.40% | -33.30% |
| Block | 1.43% | 8.10% | 4.53% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Sharplink Gaming and Block, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sharplink Gaming | 1 | 0 | 8 | 0 | 2.78 |
| Block | 0 | 9 | 29 | 3 | 2.85 |
Sharplink Gaming currently has a consensus price target of $16.00, indicating a potential upside of 137.39%. Block has a consensus price target of $95.61, indicating a potential upside of 25.21%. Given Sharplink Gaming’s higher possible upside, analysts clearly believe Sharplink Gaming is more favorable than Block.
Valuation and Earnings
This table compares Sharplink Gaming and Block”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sharplink Gaming | $28.06 million | 52.18 | -$734.59 million | $0.05 | 134.80 |
| Block | $24.19 billion | 1.90 | $1.31 billion | $0.56 | 136.37 |
Block has higher revenue and earnings than Sharplink Gaming. Sharplink Gaming is trading at a lower price-to-earnings ratio than Block, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
13.8% of Sharplink Gaming shares are held by institutional investors. Comparatively, 70.4% of Block shares are held by institutional investors. 3.6% of Sharplink Gaming shares are held by insiders. Comparatively, 11.4% of Block shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Block beats Sharplink Gaming on 12 of the 15 factors compared between the two stocks.
About Sharplink Gaming
SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.
About Block
Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.
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