Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) and Red Rock Resorts (NASDAQ:RRR – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Valuation and Earnings
This table compares Allied Gaming & Entertainment and Red Rock Resorts”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gaming & Entertainment | $9.08 million | 1.20 | -$16.76 million | ($0.54) | -0.54 |
| Red Rock Resorts | $1.94 billion | 3.45 | $154.05 million | $3.14 | 20.11 |
Risk and Volatility
Allied Gaming & Entertainment has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Allied Gaming & Entertainment and Red Rock Resorts, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
| Red Rock Resorts | 0 | 4 | 11 | 0 | 2.73 |
Red Rock Resorts has a consensus target price of $66.43, suggesting a potential upside of 5.23%. Given Red Rock Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Red Rock Resorts is more favorable than Allied Gaming & Entertainment.
Insider and Institutional Ownership
3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are owned by institutional investors. 34.6% of Allied Gaming & Entertainment shares are owned by insiders. Comparatively, 53.8% of Red Rock Resorts 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.
Profitability
This table compares Allied Gaming & Entertainment and Red Rock Resorts’ 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% |
| Red Rock Resorts | 9.52% | 59.86% | 4.80% |
Summary
Red Rock Resorts beats Allied Gaming & Entertainment on 13 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 Red Rock Resorts
Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was founded in 1976 and is based in Las Vegas, Nevada.
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