Roblox (NYSE:RBLX – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Insider & Institutional Ownership
94.5% of Roblox shares are owned by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. 12.9% of Roblox shares are owned by insiders. Comparatively, 34.6% 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.
Volatility & Risk
Roblox has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Roblox | -21.78% | -304.42% | -12.74% |
| Allied Gaming & Entertainment | -280.09% | -19.56% | -11.82% |
Earnings & Valuation
This table compares Roblox 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 | |
| Roblox | $4.89 billion | 8.54 | -$1.07 billion | ($1.55) | -40.70 |
| Allied Gaming & Entertainment | $9.08 million | 1.10 | -$16.76 million | ($0.54) | -0.49 |
Allied Gaming & Entertainment has lower revenue, but higher earnings than Roblox. Roblox 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for Roblox and Allied Gaming & Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roblox | 2 | 7 | 17 | 1 | 2.63 |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
Roblox currently has a consensus price target of $119.44, indicating a potential upside of 89.33%. Given Roblox’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Roblox is more favorable than Allied Gaming & Entertainment.
Summary
Roblox beats Allied Gaming & Entertainment on 8 of the 14 factors compared between the two stocks.
About Roblox
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
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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