Reviewing Allied Gaming & Entertainment (NASDAQ:AIFA) & Data Storage (NASDAQ:DTST)

Allied Gaming & Entertainment (NASDAQ:AIFA) and Data Storage (NASDAQ:DTST) are both small-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Allied Gaming & Entertainment and Data Storage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gaming & Entertainment	1	0	0	0	1.00
Data Storage	1	0	0	0	1.00

Insider and Institutional Ownership

3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. Comparatively, 11.6% of Data Storage shares are owned by institutional investors. 3.7% of Allied Gaming & Entertainment shares are owned by insiders. Comparatively, 21.2% of Data Storage shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Allied Gaming & Entertainment has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500. Comparatively, Data Storage has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares Allied Gaming & Entertainment and Data Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Gaming & Entertainment	-438.98%	-67.15%	-32.58%
Data Storage	1,247.09%	-5.48%	-4.86%

Earnings and Valuation

This table compares Allied Gaming & Entertainment and Data Storage”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gaming & Entertainment	$7.97 million	2.61	-$32.79 million	($4.52)	-0.72
Data Storage	$1.38 million	4.95	$19.20 million	($0.76)	-3.84

Data Storage has lower revenue, but higher earnings than Allied Gaming & Entertainment. Data Storage 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.

Summary

Data Storage beats Allied Gaming & Entertainment on 8 of the 11 factors compared between the two stocks.

About Allied Gaming & Entertainment

Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.