Comparing Allied Gaming & Entertainment (NASDAQ:AGAE) and Bowlero (NYSE:BOWL)

Allied Gaming & Entertainment (NASDAQ:AGAE – Get Rating) and Bowlero (NYSE:BOWL – Get Rating) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings & Valuation

This table compares Allied Gaming & Entertainment and Bowlero’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gaming & Entertainment	$7.08 million	6.85	$62.87 million	($0.40)	-3.10
Bowlero	$1.03 billion	2.57	-$29.93 million	($0.33)	-48.30

Allied Gaming & Entertainment has higher earnings, but lower revenue than Bowlero. Bowlero is trading at a lower price-to-earnings ratio than Allied Gaming & Entertainment, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

3.2% of Allied Gaming & Entertainment shares are held by institutional investors. Comparatively, 64.9% of Bowlero shares are held by institutional investors. 41.9% of Allied Gaming & Entertainment shares are held by company insiders. Comparatively, 53.7% of Bowlero shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Allied Gaming & Entertainment and Bowlero, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gaming & Entertainment	0	0	0	0	N/A
Bowlero	0	0	5	0	3.00

Bowlero has a consensus target price of $18.88, suggesting a potential upside of 18.41%. Given Bowlero’s higher probable upside, analysts clearly believe Bowlero is more favorable than Allied Gaming & Entertainment.

Volatility and Risk

Allied Gaming & Entertainment has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Bowlero has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Profitability

This table compares Allied Gaming & Entertainment and Bowlero’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Gaming & Entertainment	-217.60%	-13.49%	-12.60%
Bowlero	-4.19%	-288.06%	5.67%

Summary

Bowlero beats Allied Gaming & Entertainment on 8 of the 13 factors compared between the two stocks.

About Allied Gaming & Entertainment

(Get Rating)

Allied Gaming & Entertainment, Inc. is an esports entertainment company, which engages in the creation of esports venues and live events for both video games and poker. It operates through the following segments: Poker, Gaming & Entertainment and E-Sports. The Poker, Gaming & Entertainment segment provides televised gaming and entertainment, land-based poker tournaments, and online and mobile poker applications through World Poker Tour (WPT). The E-Sports segment provides multiplayer video game competitions through Allied Esports. The company was founded on May 9, 2017 and is headquartered in New York, NY.

About Bowlero

(Get Rating)

Bowlero Corp. operates bowling entertainment centers under the AMF, Bowlmor Lanes, and Bowlero brand names. The company also provides hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. As of July 3, 2022, it operated approximately 317 centers in the United States, Mexico, and Canada. The company was founded in 1997 and is headquartered in Mechanicsville, Virginia.