Slam (SLAM) & The Competition Critical Review

Slam (NASDAQ:SLAM) is one of 33 public companies in the “Communication services, not elsewhere classified” industry, but how does it contrast to its peers? We will compare Slam to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.

Risk and Volatility

Slam has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Slam’s peers have a beta of -14.81, suggesting that their average share price is 1,581% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Slam and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Slam	0	0	0	0	N/A
Slam Competitors	124	279	451	17	2.41

As a group, “Communication services, not elsewhere classified” companies have a potential upside of 41.12%. Given Slam’s peers higher possible upside, analysts clearly believe Slam has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Slam and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Slam	N/A	$4.59 million	101.27
Slam Competitors	$2.60 billion	-$289.90 million	9.76

Slam’s peers have higher revenue, but lower earnings than Slam. Slam is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Slam and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Slam	N/A	-11.70%	2.36%
Slam Competitors	-488.40%	-75.93%	-6.69%

Institutional and Insider Ownership

87.3% of Slam shares are owned by institutional investors. Comparatively, 48.3% of shares of all “Communication services, not elsewhere classified” companies are owned by institutional investors. 0.2% of Slam shares are owned by company insiders. Comparatively, 29.4% of shares of all “Communication services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Slam beats its peers on 7 of the 10 factors compared.

Slam Company Profile

Slam Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or related business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in New York, New York.