Genius Sports vs. Opera: An In-Depth Investment Comparison
Genius Sports (NYSE:GENI) and Opera (NASDAQ:OPRA) are both notable players in the computer and technology sector. As an investor, you might find yourself weighing your options between these two distinct companies. In this article, we’ll dive into a variety of metrics—risk, institutional ownership, profitability, earnings, dividends, valuation, and analyst recommendations—to assess which investment could be more favorable.
Valuation & Earnings
One of the first metrics to consider in any investment decision is valuation, particularly for gross revenue and earnings per share (EPS).
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
|---|---|---|---|---|---|
| Genius Sports | $510.89 million | 5.39 | -$63.04 million | ($0.31) | -41.26 |
| Opera | $480.65 million | 3.50 | $80.77 million | $0.89 | 21.13 |
Genius Sports reports higher gross revenue compared to Opera but has not yet reached profitability, showing a significant net loss. Opera, conversely, showcases positive earnings and a more favorable Price/Earnings ratio, indicating better profitability at present. While Genius Sports might appear cheaper due to its lower Price/Earnings ratio, it’s essential to remember that affordability doesn’t necessarily correlate with a strong financial foundation.
Analyst Ratings
Analyst recommendations provide invaluable insights into market perceptions:
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
|---|---|---|---|---|---|
| Genius Sports | 0 | 2 | 15 | 3 | 3.05 |
| Opera | 1 | 0 | 6 | 0 | 2.71 |
Genius Sports receives generally favorable ratings with a consensus price target of $14.22, implying an upside potential of 11.20%. On the other hand, Opera’s analysts suggest a more significant upside of 32.38%, with a target of $24.90. This data indicates strong market sentiment towards Opera, positioning it as the more attractive investment according to analyst perspectives.
Profitability
The measure of profitability can be encapsulated through metrics like net margins and returns on equity and assets:
| Net Margins | Return on Equity | Return on Assets | |
|---|---|---|---|
| Genius Sports | -13.94% | -11.48% | -8.76% |
| Opera | 14.53% | 8.85% | 7.91% |
Genius Sports is currently operating at a financial loss, reflected in its negative net margins and returns. In contrast, Opera displays a robust profit margin of 14.53%, effectively turning sales into profit. This profitability is further underlined by solid returns on equity and assets, making Opera a more potentially rewarding investment.
Institutional and Insider Ownership
Understanding ownership can provide insights into investor confidence:
- Genius Sports: 81.9% of shares are held by institutional investors. Additionally, 16.6% are owned by company insiders.
- Opera: Only 10.2% of shares are held by institutional investors, while a significant 84.4% are owned by insiders.
The high level of institutional ownership in Genius Sports showcases confidence from large investors, suggesting they believe in the company’s long-term potential. In contrast, Opera’s high insider ownership can indicate strong internal confidence, though the lack of institutional backing may raise questions regarding external legitimacy.
Volatility and Risk
Examining a company’s volatility provides insight into the risks associated with its investment:
- Genius Sports: Beta of 1.87 indicates it is 87% more volatile than the S&P 500.
- Opera: Beta of 1.03 suggests it is only 3% more volatile than the S&P 500.
Investors seeking stability may lean towards Opera due to its lower susceptibility to market fluctuations compared to Genius Sports.
Summary of Key Metrics
Across the evaluated factors, Opera consistently outperforms Genius Sports in several crucial areas, such as profitability, analyst ratings, and volatility. Although Genius Sports presents a case for potential at lower pricing ratios, its challenges in profitability and higher risk could offset any investor allure.
About Genius Sports
Genius Sports Limited specializes in technology solutions for the sports, sports betting, and media industries. Founded in 2001 and headquartered in London, it offers various services including live data collection and streaming solutions, alongside integrity services that monitor sports betting activity globally.
About Opera
Opera Limited, formed in 1995 and based in Oslo, provides innovative web browsing solutions across mobile and PC platforms. Known for products like Opera Mini and Opera GX, it also ventures into ads, browser-based rewards, and Web3 services, underlining a commitment to evolving digital experience.