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Catapult Group International Ltd Vs Domino’s Pizza: 2 FIFA World Cup winners

A lot hangs in the balance for Domino’s Pizza Enterprises Ltd. (ASX: DMP) when the FIFA World Cup in Russia kicks off this Thursday, but the fast food company isn’t the only ASX stock that’s looking to score a goal from this event.

The share price of Domino’s eased 0.3% to $52.70 after a strong run from last week when the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index is up 0.1% during late afternoon trade, but it’s Catapult Group International Ltd (ASX: CAT) that is taking the spotlight with its 3.3% rally to $1.24.

Catapult is claiming the field after FIFA gave the green light for all the company’s wearable monitoring devices to be used during its matches.

This isn’t an endorsement by the global soccer body nor does it imply any additional sales for Catapult, but it’s still noteworthy because this is the first time FIFA has granted approval to a wearable tracking device company, which opens a pretty big opportunity for Catapult.

Morgans believes that most global football clubs do not use such devices to monitor their players in the field and having such data could significantly improve team performance.

“Soccer represents a major market opportunity for Catapult over the coming decade,” said the broker.

“Morgans’ recent research on global sporting clubs and bodies revealed that more than 60 percent of clubs in the top 100 football leagues globally do not currently use GPS tracking devices.”

However, investing in Catapult isn’t without risks. There’s no guarantee that the company will sign up a major football league or that a competitor wouldn’t cut in to snatch the prize by signing a league-wide contract.

Morgans also points to the risk of a further operating cost blow-out for Catapult although the $35 million of cash on its balance sheet should provide a buffer.

Shareholders will be eagerly awaiting news of any further contract wins, or even a contract loss by a key rival will excite the market.

Meanwhile, investors will also be keenly watching to see if the World Cup will boost Domino’s pizza delivery orders. The ASX-listed company owns stores in several European countries like Germany, a hot favourite to win the world cup.

The longer the German team can hang on to its World Cup dream, the more likely Germans will be hunkering down in front of the TV – arguably the most ideal place and time to be dialling (or tapping if using a smartphone) in a pizza.

You can read more about Domino’s and the FIFA World Cup by clicking here.

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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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