Head-To-Head Comparison: Alliance Entertainment (NASDAQ:AENTW) versus Pool (NASDAQ:POOL)

Pool (NASDAQ:POOL) and Alliance Entertainment (NASDAQ:AENTW) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Pool and Alliance Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pool	2	6	5	0	2.23
Alliance Entertainment	0	0	0	0	0.00

Pool presently has a consensus price target of $235.67, suggesting a potential upside of 15.84%. Given Pool’s stronger consensus rating and higher probable upside, research analysts clearly believe Pool is more favorable than Alliance Entertainment.

Institutional & Insider Ownership

99.0% of Pool shares are held by institutional investors. 3.0% of Pool shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pool	7.40%	32.74%	10.91%
Alliance Entertainment	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pool	$5.29 billion	1.40	$406.40 million	$10.87	18.72
Alliance Entertainment	$1.11 billion	N/A	N/A	N/A	N/A

Pool has higher revenue and earnings than Alliance Entertainment.

Summary

Pool beats Alliance Entertainment on 9 of the 9 factors compared between the two stocks.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.

About Alliance Entertainment

Alliance Entertainment Holding Corporation operates as a wholesaler, retailer, distributor, and e-commerce provider for the entertainment industry worldwide. The company offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. It also provides third party logistics products and services. Alliance Entertainment Holding Corporation distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company exports its products. Alliance Entertainment Holding Corporation was founded in 1990 and is headquartered in Plantation, Florida.