Gravity (NASDAQ:GRVY) versus MSP Recovery (NASDAQ:LIFW) Critical Comparison

MSP Recovery (NASDAQ:LIFW) and Gravity (NASDAQ:GRVY) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Volatility and Risk

MSP Recovery has a beta of -2.34, meaning that its stock price is 334% less volatile than the S&P 500. Comparatively, Gravity has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Valuation & Earnings

This table compares MSP Recovery and Gravity”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSP Recovery	$7.51 million	3.04	-$56.35 million	($6.26)	-0.03
Gravity	$555.74 million	0.73	$105.61 million	$13.23	4.41

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

Profitability

This table compares MSP Recovery and Gravity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSP Recovery	-1,162.14%	-5.50%	-2.37%
Gravity	14.87%	37.85%	30.67%

Analyst Recommendations

This is a summary of recent recommendations and price targets for MSP Recovery and Gravity, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSP Recovery	0	0	0	0	N/A
Gravity	0	0	0	0	N/A

Institutional and Insider Ownership

3.8% of MSP Recovery shares are owned by institutional investors. Comparatively, 9.9% of Gravity shares are owned by institutional investors. 19.4% of MSP Recovery shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Gravity beats MSP Recovery on 9 of the 11 factors compared between the two stocks.

About MSP Recovery

MSP Recovery, Inc., doing business as LifeWallet, operates as a healthcare recovery and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides LifeWallet, a scalable and expandable data ecosystem where tokenized data is stored in a platform with multiple applications, including LifeWallet EHR for hospitals, medical providers, major medical laboratories, and governmental entities that gather and store electronic health records; Chase to Pay, a real-time, or near real-time analytics driven platform that identifies the proper primary payer at the point of care; LifeChain which is in development in order to tokenize healthcare claims and patient records using blockchain technology; LifeWallet 911 which is in development for utilization by emergency service organizations; LifeWallet Legal; LifeWallet Health; and LifeWallet Sports which connected brands with college athletes. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.

About Gravity

Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and the United States. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.