GameStop (NYSE:GME – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Analyst Recommendations
This is a summary of current ratings and recommmendations for GameStop and Allied Gaming & Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameStop | 1 | 1 | 0 | 0 | 1.50 |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
GameStop presently has a consensus price target of $13.50, indicating a potential downside of 36.84%. Given GameStop’s stronger consensus rating and higher probable upside, research analysts plainly believe GameStop is more favorable than Allied Gaming & Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| GameStop | 11.08% | 9.75% | 5.80% |
| Allied Gaming & Entertainment | -280.09% | -19.56% | -11.82% |
Risk and Volatility
GameStop has a beta of -1.3, suggesting that its stock price is 230% less volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Earnings & Valuation
This table compares GameStop and Allied Gaming & Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GameStop | $3.82 billion | 2.50 | $131.30 million | $0.82 | 26.07 |
| Allied Gaming & Entertainment | $9.08 million | 1.70 | -$16.76 million | ($0.54) | -0.75 |
GameStop has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
29.2% of GameStop shares are owned by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. 8.6% of GameStop shares are owned by insiders. Comparatively, 39.4% of Allied Gaming & Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
GameStop beats Allied Gaming & Entertainment on 11 of the 13 factors compared between the two stocks.
About GameStop
GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.
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.
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