TKO Group (NYSE:TKO – Get Free Report) and Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Institutional and Insider Ownership
89.8% of TKO Group shares are held by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are held by institutional investors. 53.8% of TKO Group shares are held by insiders. Comparatively, 79.9% of Lucky Strike Entertainment shares are held 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.
Risk and Volatility
TKO Group has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TKO Group | 0 | 2 | 11 | 1 | 2.93 |
| Lucky Strike Entertainment | 0 | 1 | 0 | 0 | 2.00 |
TKO Group presently has a consensus target price of $157.00, indicating a potential upside of 4.36%. Lucky Strike Entertainment has a consensus target price of $12.00, indicating a potential upside of 19.17%. Given Lucky Strike Entertainment’s higher possible upside, analysts clearly believe Lucky Strike Entertainment is more favorable than TKO Group.
Profitability
This table compares TKO Group and Lucky Strike Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TKO Group | -1.26% | 3.39% | 2.32% |
| Lucky Strike Entertainment | 1.11% | -35.76% | 1.68% |
Dividends
TKO Group pays an annual dividend of $1.52 per share and has a dividend yield of 1.0%. Lucky Strike Entertainment pays an annual dividend of $0.22 per share and has a dividend yield of 2.2%. TKO Group pays out 7,600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lucky Strike Entertainment pays out -2,200.0% of its earnings in the form of a dividend. Lucky Strike Entertainment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares TKO Group and Lucky Strike Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TKO Group | $2.80 billion | 9.18 | $208.18 million | $0.02 | 7,522.30 |
| Lucky Strike Entertainment | $1.18 billion | 1.22 | -$83.58 million | ($0.01) | -1,007.00 |
TKO Group has higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.
Summary
TKO Group beats Lucky Strike Entertainment on 12 of the 17 factors compared between the two stocks.
About TKO Group
TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.
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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