Analyzing Motorsport Games (NASDAQ:MSGM) and Data443 Risk Mitigation (OTCMKTS:ATDSD)

Data443 Risk Mitigation (OTCMKTS:ATDSD) and Motorsport Games (NASDAQ:MSGM) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of current ratings for Data443 Risk Mitigation and Motorsport Games, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data443 Risk Mitigation	0	0	0	0	N/A
Motorsport Games	0	1	0	0	2.00

Motorsport Games has a consensus target price of $5.00, suggesting a potential upside of 296.83%. Given Motorsport Games’ higher possible upside, analysts clearly believe Motorsport Games is more favorable than Data443 Risk Mitigation.

Institutional & Insider Ownership

1.7% of Motorsport Games shares are held by institutional investors. 12.3% of Data443 Risk Mitigation shares are held by company insiders. Comparatively, 2.2% of Motorsport Games shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Data443 Risk Mitigation has a beta of -4.77, suggesting that its share price is 577% less volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500.

Profitability

This table compares Data443 Risk Mitigation and Motorsport Games’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Data443 Risk Mitigation	-186.45%	N/A	-259.30%
Motorsport Games	-116.76%	-318.81%	-50.35%

Earnings and Valuation

This table compares Data443 Risk Mitigation and Motorsport Games’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data443 Risk Mitigation	$2.63 million	0.06	-$9.71 million	N/A	N/A
Motorsport Games	$8.35 million	0.52	-$13.05 million	($3.55)	-0.35

Data443 Risk Mitigation has higher earnings, but lower revenue than Motorsport Games.

Summary

Motorsport Games beats Data443 Risk Mitigation on 7 of the 10 factors compared between the two stocks.

About Data443 Risk Mitigation

Data443 Risk Mitigation, Inc. provides data security and privacy management solutions in the United States. The company offers Ransomware Recovery Manager to recover a workstation upon infection to the last known business-operable state; Data Identification Manager, a data classification and governance technology that performs enhanced data discovery and content search of structured and unstructured data; Data Archive Manager, which provides enterprise data retention management and archiving solution; and Sensitive Content Manager, a cloud-based platform for the managing, protecting, and distributing digital content to the desktop and mobile devices. It also provides Data Placement Manager, a data transport, transformation, and delivery product; Access Control Manager that enables access controls across various platforms at scale for internal client systems and commercial public cloud platforms; Blockchain Protection Manager, which protects blockchain transactions from inadvertent disclosure and data leaks; and Global Privacy Manager, a privacy compliance and consumer loss mitigation platform. In addition, the company offers IntellyWP, a product for enhancing the user experience for content management platform; Chat History Scanner, which scans chat messages for compliance, security, personally identifiable information, personal information, payment card industry information, and custom keywords; and GDPR Framework, CCPA Framework, and LGPD Framework WordPress Plugins that enables organizations comply with European, California, and Brazilian privacy rules and regulations. It serves financial services, healthcare, manufacturing, retail, technology, and telecommunications industries. The company was formerly known as LandStar, Inc. and changed its name to Data443 Risk Mitigation, Inc. in October 2017. Data443 Risk Mitigation, Inc. was incorporated in 1998 and is headquartered in Research Triangle Park, North Carolina.

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.