Alliance Entertainment (NASDAQ:AENT – Get Free Report) and GigaCloud Technology (NASDAQ:GCT – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Volatility and Risk
Alliance Entertainment has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, GigaCloud Technology has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Alliance Entertainment and GigaCloud Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alliance Entertainment | 0 | 2 | 1 | 0 | 2.33 |
| GigaCloud Technology | 0 | 2 | 0 | 0 | 2.00 |
Profitability
This table compares Alliance Entertainment and GigaCloud Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alliance Entertainment | 2.01% | 19.91% | 5.71% |
| GigaCloud Technology | 10.65% | 31.42% | 12.93% |
Earnings & Valuation
This table compares Alliance Entertainment and GigaCloud Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alliance Entertainment | $1.06 billion | 0.27 | $15.08 million | $0.44 | 13.02 |
| GigaCloud Technology | $1.47 billion | 1.26 | $137.37 million | $4.23 | 12.26 |
GigaCloud Technology has higher revenue and earnings than Alliance Entertainment. GigaCloud Technology is trading at a lower price-to-earnings ratio than Alliance Entertainment, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
0.3% of Alliance Entertainment shares are owned by institutional investors. Comparatively, 34.9% of GigaCloud Technology shares are owned by institutional investors. 77.5% of Alliance Entertainment shares are owned by insiders. Comparatively, 23.4% of GigaCloud Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
GigaCloud Technology beats Alliance Entertainment on 9 of the 14 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 GigaCloud Technology
GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.
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