Alight (NYSE:ALIT – Get Free Report) and Falcon’s Beyond Global (NASDAQ:FBYD – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Risk and Volatility
Alight has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Falcon’s Beyond Global has a beta of -2.57, meaning that its stock price is 357% less volatile than the S&P 500.
Profitability
This table compares Alight and Falcon’s Beyond Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alight | -90.90% | 16.05% | 4.38% |
| Falcon’s Beyond Global | -8.60% | -52.83% | -19.79% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alight | $2.23 billion | 0.17 | -$3.10 billion | ($77.18) | -0.18 |
| Falcon’s Beyond Global | $14.90 million | 80.23 | $2.84 million | ($0.10) | -98.60 |
Falcon’s Beyond Global has lower revenue, but higher earnings than Alight. Falcon’s Beyond Global is trading at a lower price-to-earnings ratio than Alight, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
96.7% of Alight shares are held by institutional investors. Comparatively, 38.9% of Falcon’s Beyond Global shares are held by institutional investors. 2.1% of Alight shares are held by insiders. Comparatively, 25.2% of Falcon’s Beyond Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for Alight and Falcon’s Beyond Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alight | 2 | 3 | 3 | 0 | 2.12 |
| Falcon’s Beyond Global | 0 | 1 | 0 | 0 | 2.00 |
Alight currently has a consensus price target of $53.00, indicating a potential upside of 282.37%. Given Alight’s stronger consensus rating and higher possible upside, analysts plainly believe Alight is more favorable than Falcon’s Beyond Global.
Summary
Alight beats Falcon’s Beyond Global on 9 of the 14 factors compared between the two stocks.
About Alight
Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.
About Falcon’s Beyond Global
Falcon’s Beyond Global, Inc. is an experiential entertainment development enterprise. It connects the world by bringing stories to life through theme parks, resorts, animation, consumer products, gaming, and movies. The company propels intellectual property activations concurrently across physical and digital experiences through three core business units. Falcon’s Creative Group is a themed entertainment and master planning firm. Falcon’s Beyond Destinations develops, owns, and operates global entertainment destinations from resorts, theme parks, and attractions to retail, dining and location-based entertainment venues. Falcon’s Beyond Brands expands franchises across multiple platforms from media to gaming, music to consumer products and beyond. The firm also invents in immersive rides, attractions and technologies for entertainment destinations around the world. The company was founded on July 8, 2022 and is headquartered in Orlando, FL.
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