LiveOne (NASDAQ:LVO) versus Motorsport Games (NASDAQ:MSGM) Financial Contrast

Motorsport Games (NASDAQ:MSGM) and LiveOne (NASDAQ:LVO) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Motorsport Games and LiveOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	16.15%	41.13%	24.51%
LiveOne	-25.87%	N/A	-39.66%

Volatility & Risk

Motorsport Games has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, LiveOne has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Earnings & Valuation

This table compares Motorsport Games and LiveOne”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$11.30 million	1.81	$6.93 million	$0.43	11.40
LiveOne	$77.29 million	0.49	-$20.97 million	($1.75)	-1.59

Motorsport Games has higher earnings, but lower revenue than LiveOne. LiveOne is trading at a lower price-to-earnings ratio than Motorsport Games, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

1.7% of Motorsport Games shares are owned by institutional investors. Comparatively, 21.2% of LiveOne shares are owned by institutional investors. 4.6% of Motorsport Games shares are owned by insiders. Comparatively, 19.8% of LiveOne shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Motorsport Games and LiveOne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	2	0	0	2.00
LiveOne	1	0	1	0	2.00

LiveOne has a consensus target price of $10.00, suggesting a potential upside of 258.42%. Given LiveOne’s higher probable upside, analysts clearly believe LiveOne is more favorable than Motorsport Games.

Summary

Motorsport Games beats LiveOne on 8 of the 13 factors compared between the two stocks.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.

About LiveOne

LiveOne, Inc., a digital media company, engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content. It operates LiveXLive, a live music streaming platform; PodcastOne, a podcasting platform; and Slacker, an integrated membership and advertising streaming music service, as well as produces original music-related content. The company also produces, edits, curates, and streams live music events through broadband transmission over the Internet and satellite networks to its users; provides digital Internet radio and music services to users online and through automotive and mobile original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services. In addition, it develops, manufactures, and distributes personalized merchandise and gifts through wholesale and direct-to-consumer distribution channels. Further, the company offers LiveOne App, an application that provides access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing of content. The company was formerly known as LiveXLive Media, Inc. and changed its name to LiveOne, Inc. in October 2021. LiveOne, Inc. was incorporated in 2009 and is headquartered in Beverly Hills, California.