Head-To-Head Analysis: Pool (NASDAQ:POOL) and Alliance Entertainment (NASDAQ:AENTW)

Alliance Entertainment (NASDAQ:AENTW) and Pool (NASDAQ:POOL) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Alliance Entertainment and Pool”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliance Entertainment	$1.11 billion	N/A	N/A	N/A	N/A
Pool	$5.29 billion	1.38	$406.40 million	$10.87	18.50

Pool has higher revenue and earnings than Alliance Entertainment.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Alliance Entertainment and Pool, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliance Entertainment	0	0	0	0	0.00
Pool	2	6	5	0	2.23

Pool has a consensus target price of $235.67, indicating a potential upside of 17.20%. Given Pool’s stronger consensus rating and higher possible upside, analysts plainly believe Pool is more favorable than Alliance Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alliance Entertainment	N/A	N/A	N/A
Pool	7.40%	32.74%	10.91%

Insider & Institutional Ownership

99.0% of Pool shares are owned by institutional investors. 3.0% of Pool shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Pool beats Alliance Entertainment on 9 of the 9 factors compared between the two stocks.

About Alliance Entertainment

Alliance Entertainment Holding Corporation operates as a wholesaler, retailer, distributor, and e-commerce provider for the entertainment industry worldwide. The company offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. It also provides third party logistics products and services. Alliance Entertainment Holding Corporation distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company exports its products. Alliance Entertainment Holding Corporation was founded in 1990 and is headquartered in Plantation, Florida.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.