Head to Head Analysis: Skillz (NYSE:SKLZ) vs. Sumo Group (OTCMKTS:SUMGF)

Skillz (NYSE:SKLZ) and Sumo Group (OTCMKTS:SUMGF) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Skillz and Sumo Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillz	0	2	2	0	2.50
Sumo Group	0	0	0	0	N/A

Skillz currently has a consensus price target of $10.67, suggesting a potential upside of 80.79%. Given Skillz’s higher possible upside, equities research analysts plainly believe Skillz is more favorable than Sumo Group.

Institutional and Insider Ownership

19.4% of Skillz shares are held by institutional investors. 22.7% of Skillz shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Skillz and Sumo Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillz	$118.06 million	1.07	-$106.69 million	($5.11)	-1.15
Sumo Group	N/A	N/A	N/A	N/A	N/A

Sumo Group has lower revenue, but higher earnings than Skillz.

Profitability

This table compares Skillz and Sumo Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skillz	-47.40%	-40.12%	-21.34%
Sumo Group	N/A	N/A	N/A

Summary

Skillz beats Sumo Group on 5 of the 8 factors compared between the two stocks.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.

About Sumo Group

Sumo Group Plc, together with its subsidiaries, provides end-to-end creative development and co-development services to the video games and entertainment industries in the United Kingdom and rest of Europe, the United States, India, and Canada. It offers visual concept design, pre-production, development, user-interface design, and post-release support services. The company develops games across a range of console platforms, PC, handheld, and mobile devices. It also provides financing services. Sumo Group Plc was founded in 2003 and is based in Sheffield, the United Kingdom.