Head-To-Head Review: TKO Group (NYSE:TKO) and Bowlero (NYSE:BOWL)

TKO Group (NYSE:TKOGet Free Report) and Bowlero (NYSE:BOWLGet Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

TKO Group has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Bowlero has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Earnings and Valuation

This table compares TKO Group and Bowlero’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TKO Group $1.29 billion 11.69 $195.59 million $1.29 67.63
Bowlero $1.06 billion 1.92 $82.05 million $0.61 22.08

TKO Group has higher revenue and earnings than Bowlero. Bowlero is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TKO Group and Bowlero’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TKO Group 7.12% 7.37% 4.76%
Bowlero 12.67% 134.05% 3.11%

Analyst Recommendations

This is a summary of current recommendations and price targets for TKO Group and Bowlero, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TKO Group 0 2 7 0 2.78
Bowlero 0 0 8 0 3.00

TKO Group presently has a consensus price target of $106.25, indicating a potential upside of 21.79%. Bowlero has a consensus price target of $19.00, indicating a potential upside of 41.05%. Given Bowlero’s stronger consensus rating and higher probable upside, analysts plainly believe Bowlero is more favorable than TKO Group.

Insider and Institutional Ownership

66.3% of TKO Group shares are held by institutional investors. 38.9% of TKO Group shares are held by insiders. Comparatively, 56.5% of Bowlero shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

TKO Group beats Bowlero on 8 of the 14 factors compared between the two stocks.

About TKO Group

(Get Free Report)

TKO Group Holdings, Inc. operates as a sports and entertainment company. It operates through four segments: Media and Content, Live Events, Sponsorships, and Consumer Products Licensing. The company produces live events, television programs, and long-form and short-form video content across various platforms, including broadcast, pay television, and streaming, as well as digital and social media across approximately 170 countries. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. The company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. TKO Group Holdings, Inc. is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.

About Bowlero

(Get Free Report)

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. It operates bowling centers in the United States, Mexico, and Canada. The company is headquartered in Mechanicsville, Virginia.

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