Tremor International (NASDAQ:TRMR) & GAN (NASDAQ:GAN) Financial Review

Tremor International (NASDAQ:TRMR) and GAN (NASDAQ:GAN) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares Tremor International and GAN”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tremor International	$343.77 million	1.59	$22.74 million	($0.14)	-53.86
GAN	$126.74 million	0.65	-$34.44 million	($0.90)	-2.02

Tremor International has higher revenue and earnings than GAN. Tremor International is trading at a lower price-to-earnings ratio than GAN, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

7.9% of Tremor International shares are held by institutional investors. Comparatively, 16.7% of GAN shares are held by institutional investors. 8.2% of Tremor International shares are held by insiders. Comparatively, 8.5% of GAN shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Tremor International and GAN, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tremor International	0	0	3	0	3.00
GAN	0	1	0	0	2.00

Tremor International presently has a consensus target price of $8.00, indicating a potential upside of 6.10%. Given Tremor International’s stronger consensus rating and higher possible upside, research analysts clearly believe Tremor International is more favorable than GAN.

Risk and Volatility

Tremor International has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, GAN has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Profitability

This table compares Tremor International and GAN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tremor International	-5.72%	3.11%	1.89%
GAN	-18.48%	-323.71%	-27.66%

Summary

Tremor International beats GAN on 10 of the 14 factors compared between the two stocks.

About Tremor International

Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.

About GAN

GAN Limited operates as a business-to-business (B2B) supplier of enterprise software-as-a-service solutions to online casino gaming and sports betting applications in the United States, Europe, Latin America, and internationally. It operates through two segments: B2B and B2C. The company provides and licenses GameSTACK, an internet gaming platform that provides turnkey technology solution for regulated real-money internet gambling, online sports betting, and virtual simulated gaming. It offers Real Money iGaming, GAN sports retail and online sportsbook, super remote gaming server, Simulated Gaming, iSight Back Office, iBridge Framework, and development services; development, marketing, and customer support services designed to fast-track deployments and provide ongoing operational support services. In addition, the company offers online sports betting, online casino game, and peer-to-peer poker services through its coolbet.com website. It serves regional operators and individual tribal casino operators. GAN Limited was incorporated in 1999 and is headquartered in Irvine, California.