500.com (NYSE:WBAI) versus Alliance MMA (AMMA) Critical Review

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500.com (NYSE:WBAI) and Alliance MMA (NASDAQ:AMMA) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Risk and Volatility

500.com has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Alliance MMA has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares 500.com and Alliance MMA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
500.com -231.56% -25.38% -22.76%
Alliance MMA -424.58% -670.32% -381.53%

Valuation & Earnings

This table compares 500.com and Alliance MMA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
500.com $19.83 million 27.47 -$48.73 million N/A N/A
Alliance MMA $4.21 million 0.83 -$11.97 million N/A N/A

Alliance MMA has lower revenue, but higher earnings than 500.com.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for 500.com and Alliance MMA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
500.com 0 0 0 0 N/A
Alliance MMA 0 0 0 0 N/A

Institutional & Insider Ownership

11.3% of 500.com shares are held by institutional investors. Comparatively, 3.0% of Alliance MMA shares are held by institutional investors. 19.7% of 500.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

500.com beats Alliance MMA on 7 of the 9 factors compared between the two stocks.

500.com Company Profile

500.com Limited, through its subsidiaries, provides online gaming services primarily in the People's Republic of China and Europe. It operates online gaming sites, such as Multilotto.com or Multilotto.net in Curacao, Malta, the United Kingdom, and Ireland, as well as provides users with various casino services, including online slot machines and online table games. The company also operates a sports information portal and a mobile application, which offers real time soccer match information and data-driven soccer match predictions, as well as allows users to post free or pay-per-view contents, such as observations and analyses on the portal; and provides a pay-service, which offers users the ability to connect with independent sports experts to obtain information on specific sporting matches. In addition, it engages in the provision of lottery-related technologies, systems, and solutions to state-run lottery operators. Further, the company operates a platform to provide customers with online spot commodity trading for gold trade and delay products across PC and mobile devices. The company was formerly known as 500wan.com Limited and changed its name to 500.com Limited in October 2013. 500.com Limited was founded in 2001 and is based in Shenzhen, the People's Republic of China.

Alliance MMA Company Profile

Alliance MMA, Inc. focuses on mixed martial arts (MMA) promotional activities. It operates through three segments: Promotions, Ticket Services, and Athlete Management. The company offers MMA promotions, MMA ticketing platform, and fighter management services. It also provides live MMA event promotion, as well as athlete management services to professional MMA fighters. The company was founded in 2015 and is based in New York, New York.

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