IDT (NYSE:IDT – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AIFA – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
Risk & Volatility
IDT has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 2.44, meaning that its share price is 144% more volatile than the S&P 500.
Insider and Institutional Ownership
59.3% of IDT shares are held by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are held by institutional investors. 25.4% of IDT shares are held by company insiders. Comparatively, 3.7% of Allied Gaming & Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IDT | 0 | 1 | 2 | 0 | 2.67 |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
IDT currently has a consensus target price of $85.00, suggesting a potential upside of 6.12%. Given IDT’s stronger consensus rating and higher probable upside, analysts plainly believe IDT is more favorable than Allied Gaming & Entertainment.
Profitability
This table compares IDT and Allied Gaming & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IDT | 6.67% | 24.22% | 12.69% |
| Allied Gaming & Entertainment | -438.98% | -67.15% | -32.58% |
Earnings and Valuation
This table compares IDT and Allied Gaming & Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IDT | $1.30 billion | 1.53 | $86.63 million | $3.47 | 23.08 |
| Allied Gaming & Entertainment | $7.97 million | 5.97 | -$32.79 million | ($4.52) | -1.64 |
IDT has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than IDT, indicating that it is currently the more affordable of the two stocks.
Summary
IDT beats Allied Gaming & Entertainment on 12 of the 14 factors compared between the two stocks.
About IDT
IDT Corporation provides communications and payment services in the United States, the United Kingdom, and internationally. It operates through Fintech, National Retail Solutions, net2phone, and Traditional Communications segments. The company operates point of sale, a terminal-based platform which provides independent retailers store management software, electronic payment processing, and other ancillary merchant services; and provides marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services; and Leaf, a digital wallet services which operates money transfer businesses, as well as net2phone, a unified cloud communication services, which includes voice, texting, and chat services to enable smarter business conversations. In addition, the company provides IDT Digital Payments enables businesses, entrepreneurs, and developers to offer prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards, and prepaid utility payments through its Zendit platform; and BOSS Revolution Calling, which provides international long-distance voice services primarily to immigrant communities in the United States and Canada. Further, it offers IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a unique self-serve portal that offers SMBs the power to purchase DIDs, manage IPs, select termination quality, make payments, and other services. The company also provides Awards2Go, a B2B incentive, loyalty, and customer appreciation gift card solution; and IO Security which provides automation to remediation. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.
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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