Analyzing Allied Gaming & Entertainment (NASDAQ:AGAE) and Skillz (NYSE:SKLZ)

Skillz (NYSE:SKLZ) and Allied Gaming & Entertainment (NASDAQ:AGAE) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares Skillz and Allied Gaming & Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skillz	-69.44%	-50.96%	-22.19%
Allied Gaming & Entertainment	-280.09%	-19.56%	-11.82%

Risk and Volatility

Skillz has a beta of 2.96, indicating that its share price is 196% more volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Insider and Institutional Ownership

19.4% of Skillz shares are held by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are held by institutional investors. 38.3% of Skillz shares are held by insiders. Comparatively, 34.6% of Allied Gaming & Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Skillz and Allied Gaming & Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillz	1	0	1	0	2.00
Allied Gaming & Entertainment	1	0	0	0	1.00

Skillz currently has a consensus target price of $15.00, suggesting a potential upside of 332.15%. Given Skillz’s stronger consensus rating and higher possible upside, research analysts plainly believe Skillz is more favorable than Allied Gaming & Entertainment.

Earnings & Valuation

This table compares Skillz and Allied Gaming & Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillz	$95.47 million	0.55	-$46.79 million	($4.14)	-0.84
Allied Gaming & Entertainment	$9.08 million	1.37	-$16.76 million	($0.54)	-0.61

Allied Gaming & Entertainment has lower revenue, but higher earnings than Skillz. Skillz is trading at a lower price-to-earnings ratio than Allied Gaming & Entertainment, indicating that it is currently the more affordable of the two stocks.

Summary

Skillz beats Allied Gaming & Entertainment on 8 of the 14 factors compared between the two stocks.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.

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.