Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) and Warner Music Group (NASDAQ:WMG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.
Risk and Volatility
Lucky Strike Entertainment has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Warner Music Group has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.
Earnings and Valuation
This table compares Lucky Strike Entertainment and Warner Music Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lucky Strike Entertainment | $1.18 billion | 1.14 | -$83.58 million | ($0.01) | -946.00 |
| Warner Music Group | $6.34 billion | 2.45 | $435.00 million | $0.98 | 30.44 |
Institutional & Insider Ownership
68.1% of Lucky Strike Entertainment shares are owned by institutional investors. Comparatively, 96.9% of Warner Music Group shares are owned by institutional investors. 79.9% of Lucky Strike Entertainment shares are owned by insiders. Comparatively, 72.2% of Warner Music Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
Lucky Strike Entertainment pays an annual dividend of $0.22 per share and has a dividend yield of 2.3%. Warner Music Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Lucky Strike Entertainment pays out -2,200.0% of its earnings in the form of a dividend. Warner Music Group pays out 73.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Analyst Ratings
This is a summary of current recommendations and price targets for Lucky Strike Entertainment and Warner Music Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lucky Strike Entertainment | 0 | 1 | 1 | 0 | 2.50 |
| Warner Music Group | 2 | 6 | 9 | 0 | 2.41 |
Lucky Strike Entertainment presently has a consensus price target of $10.50, suggesting a potential upside of 10.99%. Warner Music Group has a consensus price target of $35.47, suggesting a potential upside of 18.91%. Given Warner Music Group’s higher probable upside, analysts clearly believe Warner Music Group is more favorable than Lucky Strike Entertainment.
Profitability
This table compares Lucky Strike Entertainment and Warner Music Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lucky Strike Entertainment | 1.11% | -35.76% | 1.68% |
| Warner Music Group | 8.07% | 79.01% | 5.71% |
Summary
Warner Music Group beats Lucky Strike Entertainment on 13 of the 16 factors compared between the two stocks.
About Lucky Strike Entertainment
Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.
About Warner Music Group
Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics, and Warner Music Nashville. This segment markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. The Music Publishing segment owns and acquires rights to approximately one million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions. Its catalog includes approximately 150,000 songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. This segment also administers the music and soundtracks of various third-party television and film producers and studios. The company was founded in 1929 and is headquartered in New York, New York.
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