Critical Review: Super League Enterprise (NASDAQ:SLE) versus SofTech (OTCMKTS:SOFT)

Super League Enterprise (NASDAQ:SLE) and SofTech (OTCMKTS:SOFT) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Super League Enterprise and SofTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Super League Enterprise	-110.58%	-401.11%	-136.94%
SofTech	N/A	N/A	N/A

Earnings and Valuation

This table compares Super League Enterprise and SofTech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super League Enterprise	$22.27 million	0.45	-$30.33 million	($5.61)	-0.11
SofTech	N/A	N/A	N/A	N/A	N/A

SofTech has lower revenue, but higher earnings than Super League Enterprise.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Super League Enterprise and SofTech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super League Enterprise	0	0	2	0	3.00
SofTech	0	0	0	0	0.00

Super League Enterprise currently has a consensus price target of $2.50, suggesting a potential upside of 287.66%. Given Super League Enterprise’s stronger consensus rating and higher probable upside, analysts plainly believe Super League Enterprise is more favorable than SofTech.

Volatility & Risk

Super League Enterprise has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, SofTech has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Institutional & Insider Ownership

2.1% of Super League Enterprise shares are owned by institutional investors. 5.4% of Super League Enterprise shares are owned by insiders. Comparatively, 28.6% of SofTech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Super League Enterprise beats SofTech on 6 of the 10 factors compared between the two stocks.

About Super League Enterprise

Super League Enterprise, Inc. creates and publishes content and media solutions across immersive platforms in the United States and internationally. The company offers access to audiences who gather in immersive digital spaces to socialize, play, explore, collaborate, shop, learn, and create. It also provides a range of development, distribution, monetization, and optimization capabilities designed to engage users through dynamic and energized programs. Its proprietary cloud-based platform offers dynamic media technology; metaverse game experience and tournament technology; and fully remote production and livestream broadcast technology. In addition, the company operates Minecraft server world for more casual players on consoles and tablets. Further, it sells on-platform media and analytics products, and influencer marketing campaign sales to third-party brands and agencies; game development and custom game experiences within its owned and affiliate game worlds; and production, curation and distribution of entertainment content for its network of digital channels and media and entertainment partner channels. The company was formerly known as Super League Gaming, Inc. and changed its name to Super League Enterprise, Inc. in September 2023. Super League Enterprise, Inc. was founded in 2015 and is headquartered in Santa Monica, California.

About SofTech

SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation’s Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.