Financial Comparison: Alliance Entertainment (AENT) versus Its Competitors

Alliance Entertainment (NASDAQ:AENT) is one of 25 public companies in the “MEDIA CONGLOM” industry, but how does it weigh in compared to its peers? We will compare Alliance Entertainment to similar businesses based on the strength of its analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Insider and Institutional Ownership

0.3% of Alliance Entertainment shares are owned by institutional investors. Comparatively, 39.0% of shares of all “MEDIA CONGLOM” companies are owned by institutional investors. 81.9% of Alliance Entertainment shares are owned by company insiders. Comparatively, 16.8% of shares of all “MEDIA CONGLOM” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Alliance Entertainment and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alliance Entertainment	$1.07 billion	$4.58 million	23.08
Alliance Entertainment Competitors	$9.89 billion	-$285.69 million	-29.47

Alliance Entertainment’s peers have higher revenue, but lower earnings than Alliance Entertainment. Alliance Entertainment is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Alliance Entertainment and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliance Entertainment	0	0	1	0	3.00
Alliance Entertainment Competitors	270	885	1589	41	2.50

Alliance Entertainment presently has a consensus price target of $10.00, indicating a potential upside of 80.51%. As a group, “MEDIA CONGLOM” companies have a potential upside of 8.91%. Given Alliance Entertainment’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Alliance Entertainment is more favorable than its peers.

Volatility & Risk

Alliance Entertainment has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Alliance Entertainment’s peers have a beta of 3.59, suggesting that their average share price is 259% more volatile than the S&P 500.

Profitability

This table compares Alliance Entertainment and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alliance Entertainment	1.10%	15.59%	3.86%
Alliance Entertainment Competitors	1.09%	-76.31%	1.96%

Summary

Alliance Entertainment beats its peers on 9 of the 13 factors compared.

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.