TKO Group (NYSE:TKO – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AGAE – 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 profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations for TKO Group and Allied Gaming & Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TKO Group | 0 | 3 | 11 | 0 | 2.79 |
| Allied Gaming & Entertainment | 0 | 0 | 0 | 0 | N/A |
TKO Group presently has a consensus target price of $107.46, suggesting a potential upside of 24.36%. Given TKO Group’s higher probable upside, equities analysts plainly believe TKO Group is more favorable than Allied Gaming & Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| TKO Group | 3.02% | 3.11% | 2.12% |
| Allied Gaming & Entertainment | -46.98% | -4.29% | -3.85% |
Insider and Institutional Ownership
89.8% of TKO Group shares are held by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are held by institutional investors. 38.9% of TKO Group shares are held by company insiders. Comparatively, 39.4% of Allied Gaming & Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares TKO Group and Allied Gaming & Entertainment’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TKO Group | $1.68 billion | 8.87 | $208.18 million | $0.68 | 127.07 |
| Allied Gaming & Entertainment | $7.66 million | 4.86 | -$10.82 million | ($0.10) | -10.10 |
TKO Group has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
TKO Group has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Summary
TKO Group beats Allied Gaming & Entertainment on 11 of the 13 factors compared between the two stocks.
About TKO Group
TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.
About Allied Gaming & Entertainment
Allied Gaming & Entertainment Inc. provides entertainment and gaming products worldwide. It operates esports properties to connect players and fans through a network of connected arenas; a flagship gaming arena located at the Luxor Hotel in Las Vegas, Nevada; a mobile esports truck that serves as a battleground and content generation hub; and a studio for recording and streaming gaming events. The company was formerly known as Allied Esports Entertainment Inc. and changed its name to Allied Gaming & Entertainment Inc. in December 2022. Allied Gaming & Entertainment Inc. is based in New York, New York.
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