Comparing Allied Gaming & Entertainment (NASDAQ:AIFA) & GameSquare (NASDAQ:GAME)

Allied Gaming & Entertainment (NASDAQ:AIFA) and GameSquare (NASDAQ:GAME) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Risk and Volatility

Allied Gaming & Entertainment has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, GameSquare has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allied Gaming & Entertainment	-411.07%	-51.26%	-29.52%
GameSquare	-87.56%	-42.48%	-15.43%

Insider & Institutional Ownership

3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. Comparatively, 64.3% of GameSquare shares are owned by institutional investors. 35.0% of Allied Gaming & Entertainment shares are owned by insiders. Comparatively, 5.1% of GameSquare shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Allied Gaming & Entertainment and GameSquare”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gaming & Entertainment	$7.97 million	2.52	-$32.79 million	($0.82)	-0.66
GameSquare	$45.00 million	0.86	-$40.10 million	($0.59)	-0.70

Allied Gaming & Entertainment has higher earnings, but lower revenue than GameSquare. GameSquare 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 recommendations for Allied Gaming & Entertainment and GameSquare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gaming & Entertainment	1	0	0	0	1.00
GameSquare	2	0	0	0	1.00

Summary

GameSquare beats Allied Gaming & Entertainment on 6 of the 11 factors compared between the two stocks.

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.

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.