Allied Gaming & Entertainment (NASDAQ:AGAE) versus Lucky Strike Entertainment (NYSE:LUCK) Critical Review

In this analysis, we will compare two small-cap consumer discretionary companies: Allied Gaming & Entertainment (NASDAQ:AGAE) and Lucky Strike Entertainment (NYSE:LUCK). We will look at several factors including analyst recommendations, risk levels, earnings performance, dividends, institutional ownership, valuation metrics, and overall profitability.

Analyst Ratings

Recent recommendations for both companies provide insight into their perceived value in the market. Information gathered from MarketBeat.com indicates the following:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucky Strike Entertainment	0	1	0	0	2.00
Allied Gaming & Entertainment	0	0	0	0	0.00

Currently, Lucky Strike has a consensus target price of $12.00, indicating a potential upside of 2.04%. Analysts favor Lucky Strike Entertainment over Allied Gaming & Entertainment based on stronger ratings and its upside potential.

Insider and Institutional Ownership

Ownership stakes give insight into how larger investors perceive these companies. Lucky Strike Entertainment has 68.1% of its shares held by institutional investors, a favorable indicator of future performance. In contrast, only 3.2% of Allied Gaming & Entertainment’s shares are held by institutional shareholders. Additionally, insiders hold 79.9% of Lucky Strike shares versus 39.4% for Allied Gaming, suggesting a stronger confidence in Lucky Strike from its insiders.

Earnings & Valuation

Understanding the financial health of both companies is crucial. Below is a comparison of their revenue, profitability metrics, and valuation:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucky Strike Entertainment	$1.18 billion	1.46	-$83.58 million	($0.01)	-1,176.00
Allied Gaming & Entertainment	$7.66 million	5.41	-$3.60 million	($0.27)	-3.48

While Allied Gaming has significantly lower revenue compared to Lucky Strike, it reports higher earnings on a per-share basis. Notably, Lucky Strike has a lower price-to-earnings ratio, indicating it is relatively more affordable at present.

Volatility and Risk

Risk levels can be evaluated through a study of beta values. Lucky Strike Entertainment shows a beta of 0.77, meaning its share price is less volatile than the broader market, while Allied Gaming has a beta of 1.44, showing a higher volatility rate.

Profitability

The profitability of each company can be assessed through their net margins, return on equity, and return on assets:

	Net Margins	Return on Equity	Return on Assets
Lucky Strike Entertainment	1.11%	-35.76%	1.68%
Allied Gaming & Entertainment	-114.68%	-7.13%	-5.27%

Overall, Lucky Strike outperforms Allied Gaming in terms of profitability metrics.

Summary

In summary, Lucky Strike Entertainment has the edge over Allied Gaming & Entertainment in 8 out of 13 comparative categories analyzed. While Allied Gaming operates in the booming esports space, Lucky Strike’s established business model and institutional backing appear to provide a more stable investment opportunity.

About Lucky Strike Entertainment

Lucky Strike Entertainment Corp. specializes in running bowling centers that offer a blend of entertainment options, including lounge seating, arcades, food and beverages, and even hosting various bowling tournaments. Founded by Thomas F. Shannon in 1997, the company is based in Mechanicsville, VA.

About Allied Gaming & Entertainment

Allied Gaming & Entertainment, Inc. focuses on creating premier esports venues and live events for video games and poker. Established in 2017, the company's headquarters are in New York, NY.

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