GameSquare (NASDAQ:GAME – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Profitability
This table compares GameSquare and Allied Gaming & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GameSquare | -87.56% | -42.48% | -15.43% |
| Allied Gaming & Entertainment | -411.07% | -51.26% | -29.52% |
Insider & Institutional Ownership
64.3% of GameSquare shares are owned by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. 5.1% of GameSquare shares are owned by insiders. Comparatively, 35.0% of Allied Gaming & Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Analyst Ratings
This is a breakdown of current recommendations and price targets for GameSquare and Allied Gaming & Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameSquare | 2 | 0 | 0 | 0 | 1.00 |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares GameSquare and Allied Gaming & Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GameSquare | $45.00 million | 0.85 | -$40.10 million | ($0.59) | -0.69 |
| Allied Gaming & Entertainment | $7.97 million | 2.86 | -$32.79 million | ($0.82) | -0.75 |
Allied Gaming & Entertainment has lower revenue, but higher earnings than GameSquare. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than GameSquare, indicating that it is currently the more affordable of the two stocks.
Summary
GameSquare beats Allied Gaming & Entertainment on 7 of the 11 factors compared between the two stocks.
About GameSquare
GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.
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.
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