Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) and Light & Wonder (NASDAQ:LNW – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Risk and Volatility
Allied Gaming & Entertainment has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Light & Wonder has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
Profitability
This table compares Allied Gaming & Entertainment and Light & Wonder’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allied Gaming & Entertainment | -253.19% | -10.27% | -6.50% |
| Light & Wonder | 10.89% | 71.17% | 8.73% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
| Light & Wonder | 1 | 4 | 5 | 0 | 2.40 |
Light & Wonder has a consensus target price of $103.86, suggesting a potential upside of 40.94%. Given Light & Wonder’s stronger consensus rating and higher probable upside, analysts plainly believe Light & Wonder is more favorable than Allied Gaming & Entertainment.
Institutional and Insider Ownership
3.2% of Allied Gaming & Entertainment shares are held by institutional investors. Comparatively, 88.1% of Light & Wonder shares are held by institutional investors. 39.4% of Allied Gaming & Entertainment shares are held by insiders. Comparatively, 2.2% of Light & Wonder shares are held by 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.
Earnings and Valuation
This table compares Allied Gaming & Entertainment and Light & Wonder”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gaming & Entertainment | $8.25 million | 3.31 | -$16.76 million | ($0.51) | -1.41 |
| Light & Wonder | $3.20 billion | 1.94 | $336.00 million | $3.96 | 18.61 |
Light & Wonder has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.
Summary
Light & Wonder beats Allied Gaming & Entertainment on 11 of the 14 factors compared between the two stocks.
About Allied Gaming & Entertainment
Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.
About Light & Wonder
Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.
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