Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) and Light & Wonder (NASDAQ:LNW – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Profitability
This table compares Allied Gaming & Entertainment and Light & Wonder’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allied Gaming & Entertainment | -253.19% | -10.27% | -6.50% |
| Light & Wonder | 10.89% | 71.17% | 8.73% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Allied Gaming & Entertainment and Light & Wonder, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
| Light & Wonder | 1 | 4 | 5 | 0 | 2.40 |
Institutional and Insider Ownership
3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. Comparatively, 88.1% of Light & Wonder shares are owned by institutional investors. 39.4% of Allied Gaming & Entertainment shares are owned by company insiders. Comparatively, 2.2% of Light & Wonder shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Allied Gaming & Entertainment has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Light & Wonder has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Valuation & Earnings
This table compares Allied Gaming & Entertainment and Light & Wonder”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gaming & Entertainment | $9.08 million | 2.98 | -$16.76 million | ($0.51) | -1.39 |
| Light & Wonder | $3.19 billion | 2.01 | $336.00 million | $3.96 | 19.23 |
Light & Wonder has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.
Summary
Light & Wonder beats Allied Gaming & Entertainment on 11 of the 14 factors compared between the two stocks.
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.
About Light & Wonder
Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.
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