Analyzing Allied Gaming & Entertainment (NASDAQ:AGAE) and Flutter Entertainment (NYSE:FLUT)

Flutter Entertainment (NYSE:FLUT) and Allied Gaming & Entertainment (NASDAQ:AGAE) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Flutter Entertainment and Allied Gaming & Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	2	5	17	3	2.78
Allied Gaming & Entertainment	1	0	0	0	1.00

Flutter Entertainment currently has a consensus target price of $280.86, suggesting a potential upside of 66.36%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Flutter Entertainment is more favorable than Allied Gaming & Entertainment.

Institutional and Insider Ownership

3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. 0.1% of Flutter Entertainment shares are owned by company insiders. Comparatively, 34.6% of Allied Gaming & Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Flutter Entertainment has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Profitability

This table compares Flutter Entertainment and Allied Gaming & Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-0.95%	14.42%	5.23%
Allied Gaming & Entertainment	-280.09%	-19.56%	-11.82%

Earnings and Valuation

This table compares Flutter Entertainment and Allied Gaming & Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flutter Entertainment	$14.05 billion	2.11	$43.00 million	($1.30)	-129.87
Allied Gaming & Entertainment	$9.08 million	1.25	-$16.76 million	($0.54)	-0.56

Flutter Entertainment has higher revenue and earnings than Allied Gaming & Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than Allied Gaming & Entertainment, indicating that it is currently the more affordable of the two stocks.

Summary

Flutter Entertainment beats Allied Gaming & Entertainment on 11 of the 15 factors compared between the two stocks.

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.

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.