Sycamore Entertainment Group (OTCMKTS:SEGI) and Alliance Entertainment (NASDAQ:AENT) Critical Contrast

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

Analyst Ratings

This is a summary of current recommendations for Alliance Entertainment and Sycamore Entertainment Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliance Entertainment	0	2	2	0	2.50
Sycamore Entertainment Group	0	0	0	0	0.00

Alliance Entertainment currently has a consensus target price of $10.67, suggesting a potential upside of 62.85%. Given Alliance Entertainment’s stronger consensus rating and higher possible upside, equities analysts plainly believe Alliance Entertainment is more favorable than Sycamore Entertainment Group.

Insider and Institutional Ownership

0.3% of Alliance Entertainment shares are owned by institutional investors. 77.6% of Alliance Entertainment shares are owned by company insiders. Comparatively, 75.5% of Sycamore Entertainment Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alliance Entertainment	1.42%	18.35%	4.67%
Sycamore Entertainment Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Alliance Entertainment and Sycamore Entertainment Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliance Entertainment	$1.06 billion	0.31	$15.08 million	$0.30	21.83
Sycamore Entertainment Group	N/A	N/A	N/A	N/A	N/A

Alliance Entertainment has higher revenue and earnings than Sycamore Entertainment Group.

Risk and Volatility

Alliance Entertainment has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Sycamore Entertainment Group has a beta of 62.29, indicating that its stock price is 6,129% more volatile than the S&P 500.

Summary

Alliance Entertainment beats Sycamore Entertainment Group on 9 of the 10 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. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It 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 Sycamore Entertainment Group

Sycamore Entertainment Group, Inc., a diversified entertainment company, which specializes in the acquisition, marketing, and worldwide distribution of feature-length motion pictures. The company is based in Seattle, Washington.