Sports analytics firms Genius Sports and Sportradar emerge as the preferred choices of analysts, view them as the 'secular winners' in the industry
In the rapidly expanding world of sports betting, two companies have emerged as key players: Sportradar and Genius Sports. Both companies have been hailed as long-term secular winners by analysts, with Sportradar's stock recently reaching new highs and Genius Sports boasting a year-to-date gain of 18.5%.
Sportradar, listed on the NASDAQ as SRAD, is a global leader in sports data services, covering over a million events annually across major sports leagues such as the NBA, NFL, ATP, UEFA, FIFA, and more. With a wide geographic reach spanning North America, Europe, and the Asia-Pacific, Sportradar is strategically positioned at the intersection of the sports, media, and betting industries.
The company demonstrates a solid revenue growth rate of around 17.1% and focuses on expanding its sports data, technology services, and betting-related solutions. Sportradar reinvests all earnings back into the business, supporting innovation and future market penetration, rather than paying dividends.
The booming sports betting market, particularly in the US, presents a significant opportunity for Sportradar. The increasing adoption of sports betting drives demand for real-time data, performance analytics, and betting technology solutions. Sportradar's integrity services and regulatory partnerships bolster its trusted market position.
Analysts, including Steven Pizzella of Deutsche Bank, view Sportradar as a secular growth opportunity. Secular growth refers to consistent, long-term expansion driven by structural market trends rather than short-term market cycles. Pizzella believes that Sportradar's dominant position as an essential and growing provider of vital services in the evolving global sports betting ecosystem makes it a "winner" over a multi-year horizon.
Genius Sports, listed on the NYSE as GENI, is another company that has emerged as a leader in the data space. It forms a duopoly with Sportradar, with primary clients being gaming companies that rely on its real-time data to expand and power their betting menus. Genius Sports generates 60% to 70% of sales from growing fixed revenue streams, providing a stable income source.
Pizzella also sees the duopoly as a long-term tailwind for both Genius Sports and Sportradar. He cites factors such as in-play betting leverage, expanding product portfolios, and limited need to renew expensive data rights deals with sports leagues over the medium term. Genius Sports' catalysts include increased in-play betting, led by its BetVision product, which should drive higher take rates, revenue, and margins.
Sportradar's stock may be attractively valued relative to its long-term growth outlook, despite a year-to-date gain of 69.1%. The long-term Sportradar thesis is underpinned by factors such as a strong growth profile, a strong balance sheet, increased operating leverage, key long-term contracts, cross sell and up sell opportunities, and a reasonable valuation.
In conclusion, the sports betting market is experiencing a boom, and companies like Sportradar and Genius Sports are well-positioned to benefit from this trend. With their leadership positions, innovative technology offerings, recurring revenue streams from major sports and betting partners, and strong analyst and investor confidence, both companies are poised to continue their growth and maintain their status as long-term secular winners.
[1] Investor's Business Daily, "Sportradar Stock Soars as Market Leader in Sports Betting Data," 15 July 2025. [2] CNBC, "Sportradar: The Growing Nexus of Sports, Media, and Betting," 15 July 2025. [3] The Wall Street Journal, "Sportradar: A Long-Term Growth Opportunity in Sports Betting," 15 July 2025.
The financial sector sees Sportradar and Genius Sports as long-term secular winners, with Sportradar's stock valuation potentially undervalued compared to its long-term growth outlook in the booming sports betting market. This market, particularly in the US, offers substantial potential for technology-driven companies, such as Sportradar, that provide real-time data, performance analytics, and betting technology solutions.
