Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) and GameStop (NYSE:GME – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Profitability
This table compares Allied Gaming & Entertainment and GameStop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allied Gaming & Entertainment | -280.09% | -19.56% | -11.82% |
| GameStop | 11.08% | 9.75% | 5.80% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Allied Gaming & Entertainment and GameStop, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
| GameStop | 1 | 1 | 0 | 0 | 1.50 |
Earnings and Valuation
This table compares Allied Gaming & Entertainment and GameStop”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gaming & Entertainment | $9.08 million | 1.42 | -$16.76 million | ($0.54) | -0.63 |
| GameStop | $3.82 billion | 2.61 | $131.30 million | $0.82 | 27.16 |
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
3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. Comparatively, 29.2% of GameStop shares are owned by institutional investors. 39.4% of Allied Gaming & Entertainment shares are owned by insiders. Comparatively, 8.6% of GameStop shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Allied Gaming & Entertainment has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, GameStop has a beta of -1.3, meaning that its stock price is 230% less volatile than the S&P 500.
Summary
GameStop beats Allied Gaming & Entertainment on 11 of the 13 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 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.
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