Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) and Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent recommendations for Lucky Strike Entertainment and Dave & Buster’s Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lucky Strike Entertainment | 3 | 6 | 4 | 0 | 2.08 |
| Dave & Buster’s Entertainment | 2 | 5 | 2 | 0 | 2.00 |
Lucky Strike Entertainment presently has a consensus price target of $8.39, indicating a potential upside of 78.87%. Dave & Buster’s Entertainment has a consensus price target of $17.33, indicating a potential upside of 139.74%. Given Dave & Buster’s Entertainment’s higher probable upside, analysts plainly believe Dave & Buster’s Entertainment is more favorable than Lucky Strike Entertainment.
Insider and Institutional Ownership
68.1% of Lucky Strike Entertainment shares are held by institutional investors. Comparatively, 91.4% of Dave & Buster’s Entertainment shares are held by institutional investors. 84.2% of Lucky Strike Entertainment shares are held by insiders. Comparatively, 1.7% of Dave & Buster’s Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Lucky Strike Entertainment and Dave & Buster’s Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lucky Strike Entertainment | $1.25 billion | 0.51 | -$35.78 million | ($0.34) | -13.79 |
| Dave & Buster’s Entertainment | $2.10 billion | 0.12 | -$48.70 million | ($2.57) | -2.81 |
Lucky Strike Entertainment has higher earnings, but lower revenue than Dave & Buster’s Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Lucky Strike Entertainment has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.
Profitability
This table compares Lucky Strike Entertainment and Dave & Buster’s Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lucky Strike Entertainment | -2.87% | N/A | -1.05% |
| Dave & Buster’s Entertainment | -4.26% | -51.87% | -1.29% |
Summary
Lucky Strike Entertainment beats Dave & Buster’s Entertainment on 9 of the 13 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 Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
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