Contrasting Alliance Entertainment (NASDAQ:AENT) & Core & Main (NYSE:CNM)

Core & Main (NYSE:CNM) and Alliance Entertainment (NASDAQ:AENT) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.52%	18.42%	8.33%
Alliance Entertainment	N/A	-18.17%	-3.11%

Risk & Volatility

Core & Main has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Alliance Entertainment has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Earnings and Valuation

This table compares Core & Main and Alliance Entertainment’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$6.65 billion	1.04	$366.00 million	$2.13	13.99
Alliance Entertainment	N/A	N/A	$860,000.00	N/A	N/A

Core & Main has higher revenue and earnings than Alliance Entertainment.

Institutional & Insider Ownership

94.2% of Core & Main shares are owned by institutional investors. Comparatively, 0.1% of Alliance Entertainment shares are owned by institutional investors. 3.5% of Core & Main shares are owned by insiders. Comparatively, 19.7% of Alliance Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Core & Main and Alliance Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	3	6	0	2.67
Alliance Entertainment	0	0	1	0	3.00

Core & Main presently has a consensus price target of $36.20, indicating a potential upside of 21.48%. Alliance Entertainment has a consensus price target of $6.00, indicating a potential upside of 233.33%. Given Alliance Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Alliance Entertainment is more favorable than Core & Main.

Summary

Core & Main beats Alliance Entertainment on 8 of the 11 factors compared between the two stocks.

About Core & Main

Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets in the United States. Its products portfolio include pipes, valves, hydrants, fittings, and other products and services; storm drainage products, such as corrugated piping systems, retention basins, inline drains, manholes, grates, geosynthetics, erosion control, and other related products; fire protection products, including fire protection pipes, and sprinkler heads and devices, as well as fabrication services; and meter products, such as smart meter products, meter accessories, installation, software, and other services. The company's specialty products and services are used in the maintenance, repair, replacement, and construction of water, wastewater, storm drainage, and fire protection infrastructure. Core & Main, Inc. was founded in 1874 and is headquartered in St. Louis, Missouri.

About Alliance Entertainment

Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. The company offers gaming products, vinyl records, digital video discs and blu-rays, compact discs, and consumer products and collectibles. It also provides third party logistics products and services. The company 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.