Head-To-Head Analysis: Alliance Entertainment (NASDAQ:AENT) & Greenlane (NASDAQ:GNLN)

Alliance Entertainment (NASDAQ:AENT) and Greenlane (NASDAQ:GNLN) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Profitability

This table compares Alliance Entertainment and Greenlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alliance Entertainment	N/A	-18.17%	-3.11%
Greenlane	-115.75%	-122.08%	-78.50%

Institutional & Insider Ownership

0.1% of Alliance Entertainment shares are held by institutional investors. Comparatively, 15.7% of Greenlane shares are held by institutional investors. 19.7% of Alliance Entertainment shares are held by company insiders. Comparatively, 1.7% of Greenlane shares are held 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.

Volatility and Risk

Alliance Entertainment has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, Greenlane has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Alliance Entertainment and Greenlane, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliance Entertainment	0	0	1	0	3.00
Greenlane	0	2	0	0	2.00

Alliance Entertainment presently has a consensus price target of $6.00, indicating a potential upside of 198.51%. Greenlane has a consensus price target of $20.00, indicating a potential upside of 1,988.99%. Given Greenlane’s higher possible upside, analysts plainly believe Greenlane is more favorable than Alliance Entertainment.

Valuation and Earnings

This table compares Alliance Entertainment and Greenlane’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliance Entertainment	N/A	N/A	$860,000.00	N/A	N/A
Greenlane	$137.09 million	0.02	-$115.76 million	($137.46)	-0.01

Alliance Entertainment has higher earnings, but lower revenue than Greenlane.

Summary

Alliance Entertainment beats Greenlane on 7 of the 11 factors compared between the two stocks.

About Alliance Entertainment

Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. The company offers gaming products, vinyl records, digital video discs and blu-rays, compact discs, and consumer products and collectibles. It also provides third party logistics products and services. The company distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.

About Greenlane

Greenlane Holdings, Inc. develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise. It offers its products under the Groove, Eyce, DaVinci, Higher Standards, Pollen Gear, Marley Natural, and Keith Haring brands. The company also operates e-commerce websites, such as Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. It serves customers through smoke shops, cannabis dispensaries, and specialty retailers. The company was founded in 2005 and is headquartered in Boca Raton, Florida.