Reviewing Alliance Entertainment (AENT) & Its Competitors

Alliance Entertainment (NASDAQ:AENT) is one of 25 publicly-traded companies in the “MEDIA CONGLOM” industry, but how does it contrast to its competitors? We will compare Alliance Entertainment to related businesses based on the strength of its dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Alliance Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alliance Entertainment	1.10%	15.59%	3.86%
Alliance Entertainment Competitors	1.09%	-76.31%	1.96%

Volatility & Risk

Alliance Entertainment has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Alliance Entertainment’s competitors have a beta of 3.59, meaning that their average stock price is 259% more volatile than the S&P 500.

Insider & Institutional Ownership

0.3% of Alliance Entertainment shares are owned by institutional investors. Comparatively, 41.3% of shares of all “MEDIA CONGLOM” companies are owned by institutional investors. 81.9% of Alliance Entertainment shares are owned by company insiders. Comparatively, 14.6% of shares of all “MEDIA CONGLOM” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Alliance Entertainment and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alliance Entertainment	$1.10 billion	$4.58 million	26.77
Alliance Entertainment Competitors	$9.84 billion	-$285.69 million	-28.77

Alliance Entertainment’s competitors have higher revenue, but lower earnings than Alliance Entertainment. Alliance Entertainment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for Alliance Entertainment and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliance Entertainment	0	0	1	0	3.00
Alliance Entertainment Competitors	270	886	1592	41	2.50

Alliance Entertainment currently has a consensus target price of $10.00, indicating a potential upside of 55.64%. As a group, “MEDIA CONGLOM” companies have a potential upside of 7.08%. Given Alliance Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Alliance Entertainment is more favorable than its competitors.

Summary

Alliance Entertainment beats its competitors on 9 of the 13 factors compared.

Alliance Entertainment Company Profile

Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.