Head-To-Head Survey: Inspired Entertainment (NASDAQ:INSE) versus China Digital TV (OTCMKTS:STVVY)

China Digital TV (OTCMKTS:STVVY) and Inspired Entertainment (NASDAQ:INSE) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Valuation & Earnings

This table compares China Digital TV and Inspired Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Digital TV	$6.20 million	0.10	-$3.06 million	N/A	N/A
Inspired Entertainment	$321.20 million	0.70	$7.60 million	$0.06	141.50

Inspired Entertainment has higher revenue and earnings than China Digital TV.

Risk & Volatility

China Digital TV has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Insider & Institutional Ownership

77.4% of Inspired Entertainment shares are owned by institutional investors. 12.9% of Inspired Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for China Digital TV and Inspired Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Digital TV	0	0	0	0	N/A
Inspired Entertainment	0	1	3	0	2.75

Inspired Entertainment has a consensus target price of $16.00, suggesting a potential upside of 88.46%. Given Inspired Entertainment’s higher probable upside, analysts clearly believe Inspired Entertainment is more favorable than China Digital TV.

Profitability

This table compares China Digital TV and Inspired Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Digital TV	N/A	N/A	N/A
Inspired Entertainment	0.56%	-9.10%	2.17%

Summary

Inspired Entertainment beats China Digital TV on 10 of the 11 factors compared between the two stocks.

About China Digital TV

China Digital TV Holding Co., Ltd., through its subsidiaries, provides cable television (TV) value added services, which enables cable TV and Internet protocol television network operators to offer various TV content services in the People's Republic of China. The company offers cloud platforms with embedded gaming and other applications that provide cloud computing technology-based digital video delivery solutions to television and telecommunication network operators. Its cloud platforms enable television and telecommunication network operators to use their two-way set-top boxes to run various value-added applications, such as video games, 3D games, educational applications, and business service applications, which are accessible on smart phones, tablet computers, personal computers, Internet TVs, and other devices. The company also provides 1+ Cloud Gaming cloud platform that offers 2D games, 3D games, motion-sensing games, and customized games; and interactive education application on the cloud platform primarily through cloud television programs, including nursery rhymes, early education, English language education, and online drawing for children of age 2 to 10. In addition, it offers cloud virtual reality (VR) services that enables users to access cloud server and use various VR applications, such as games, education, and media players; and technical support and services. Further, the company provides cloud platform system integration services, such as cloud computing software, hardware, and post-contract customer support services; and system development services comprising the development of customized cloud-based software applications. China Digital TV Holding Co., Ltd. was founded in 2004 and is headquartered in Beijing, the People's Republic of China.

About Inspired Entertainment

Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.