NeoGames (NASDAQ:NGMS – Get Rating) and Allied Gaming & Entertainment (NASDAQ:AGAE – Get Rating) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares NeoGames and Allied Gaming & Entertainment's revenue, earnings per share and valuation.
Get NeoGames alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeoGames | $50.46 million | 5.54 | $4.65 million | ($0.79) | -16.09 |
| Allied Gaming & Entertainment | $4.96 million | 9.69 | $62.87 million | ($0.40) | -3.08 |
Allied Gaming & Entertainment has lower revenue, but higher earnings than NeoGames. NeoGames 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.
Institutional & Insider Ownership
55.2% of NeoGames shares are held by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are held by institutional investors. 41.9% of Allied Gaming & Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.Profitability
This table compares NeoGames and Allied Gaming & Entertainment's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NeoGames | -19.99% | 3.21% | 1.04% |
| Allied Gaming & Entertainment | -217.60% | -13.49% | -12.60% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for NeoGames and Allied Gaming & Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeoGames | 1 | 0 | 3 | 0 | 2.50 |
| Allied Gaming & Entertainment | 0 | 0 | 0 | 0 | N/A |
NeoGames presently has a consensus price target of $19.00, indicating a potential upside of 49.49%. Given NeoGames' higher possible upside, analysts clearly believe NeoGames is more favorable than Allied Gaming & Entertainment.
Risk & Volatility
NeoGames has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Summary
NeoGames beats Allied Gaming & Entertainment on 8 of the 13 factors compared between the two stocks.
About NeoGames
(Get Rating)
NeoGames S.A. provides iLottery solutions worldwide. The company offers various technology platforms, a range of value-added services, and a game studio that provides a portfolio of draw based games and instant tickets through personal computers, smartphones, and handheld devices. It also develops and operates online lotteries and games that allows lottery operators to distribute lottery products through online sales channels using the company's technology. In addition, the company offers software development and platforms sub-licensing services; and regulation and compliance, payment processing, risk management, player relationship management, and player value optimization services. The company was incorporated in 2014 and is headquartered in Tel Aviv, Israel.
About Allied Gaming & Entertainment
(Get Rating)
Allied Gaming & Entertainment Inc. provides entertainment and gaming products worldwide. It operates esports properties to connect players and fans through a network of connected arenas; a flagship gaming arena located at the Luxor Hotel in Las Vegas, Nevada; a mobile esports truck that serves as a battleground and content generation hub; and a studio for recording and streaming gaming events. The company was formerly known as Allied Esports Entertainment Inc. and changed its name to Allied Gaming & Entertainment Inc. in December 2022. Allied Gaming & Entertainment Inc. was founded in 2018 and is based in Irvine, California.
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