Endeavor Group (NYSE:EDR – Get Free Report) and Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Institutional & Insider Ownership
75.0% of Endeavor Group shares are owned by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are owned by institutional investors. 63.9% of Endeavor Group shares are owned by company insiders. Comparatively, 79.9% of Lucky Strike Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Endeavor Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Lucky Strike Entertainment pays an annual dividend of $0.22 per share and has a dividend yield of 2.4%. Endeavor Group pays out -9.0% of its earnings in the form of a dividend. Lucky Strike Entertainment pays out -2,200.0% 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. Lucky Strike Entertainment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Endeavor Group | $7.11 billion | 2.75 | $356.52 million | ($2.66) | -10.75 |
Lucky Strike Entertainment | $1.18 billion | 1.10 | -$83.58 million | ($0.01) | -911.00 |
Endeavor Group has higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Endeavor Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Endeavor Group has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Endeavor Group and Lucky Strike Entertainment, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Endeavor Group | 1 | 7 | 1 | 0 | 2.00 |
Lucky Strike Entertainment | 0 | 1 | 0 | 0 | 2.00 |
Endeavor Group presently has a consensus price target of $27.86, suggesting a potential downside of 2.59%. Lucky Strike Entertainment has a consensus price target of $12.00, suggesting a potential upside of 31.72%. Given Lucky Strike Entertainment’s higher possible upside, analysts plainly believe Lucky Strike Entertainment is more favorable than Endeavor Group.
Profitability
This table compares Endeavor Group and Lucky Strike Entertainment’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Endeavor Group | -8.34% | 3.79% | 1.94% |
Lucky Strike Entertainment | 1.11% | -35.76% | 1.68% |
Summary
Endeavor Group beats Lucky Strike Entertainment on 8 of the 15 factors compared between the two stocks.
About Endeavor Group
Endeavor Group Holdings, Inc. operates as a sports and entertainment company in the United States, the United Kingdom, and internationally. It operates through four segments: Owned Sports Properties; Events, Experiences & Rights; Representation; and Sports Data & Technology. The Owned Sports Properties segment operates a portfolio of sports properties, including Ultimate Fighting Championship, World Wrestling Entertainment, Inc., Professional Bull Rider, and Euroleague. The Events, Experiences & Rights segment provides services to live events, including sporting events, fashion, art fairs and music, culinary, lifestyle festivals, and major attractions. This segment also distributes sports programming; and operates events on behalf of third parties. The Representation segment offers services to talent across entertainment, sports, and fashion, such as actors, directors, writers, athletes, models, musicians, and other artists in various mediums. This segment provides brand strategy, marketing, advertising, public relations, analytics, digital, activation, and experiential services to corporate and other clients; intellectual property licensing services to a portfolio of entertainment, sports, and consumer product brands, including clients' licensing logos, trade names, and trademarks representation. The Sports Data & Technology segment delivers live streaming and data feeds for sports events to sportsbooks, rightsholders, and media partners, as well as on-demand virtual sports products and front-end solutions, including the UFC Event Centre. This segment also specializes in betting engine products, services and technology, and bet processing, as well as trading, pricing, and risk management tools; player account and wallet solutions; front-end user experiences and user interfaces; and content offerings, such as BetBuilder, DonBest pricing feeds, and a sports content aggregation platform. The company was founded in 1898 and is based in Beverly Hills, California.
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.
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