Flight Centre (OTCMKTS:FGETF) & Lucky Strike Entertainment (NYSE:LUCK) Critical Comparison

Lucky Strike Entertainment (NYSE:LUCK) and Flight Centre (OTCMKTS:FGETF) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Lucky Strike Entertainment and Flight Centre, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucky Strike Entertainment	1	3	3	0	2.29
Flight Centre	0	0	1	0	3.00

Lucky Strike Entertainment presently has a consensus price target of $12.20, indicating a potential upside of 15.20%. Given Lucky Strike Entertainment’s higher probable upside, equities research analysts clearly believe Lucky Strike Entertainment is more favorable than Flight Centre.

Valuation & Earnings

This table compares Lucky Strike Entertainment and Flight Centre”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucky Strike Entertainment	$1.20 billion	1.24	-$10.02 million	($0.13)	-81.46
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A

Flight Centre has higher revenue and earnings than Lucky Strike Entertainment.

Insider & Institutional Ownership

68.1% of Lucky Strike Entertainment shares are owned by institutional investors. 79.9% of Lucky Strike Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lucky Strike Entertainment and Flight Centre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucky Strike Entertainment	-0.83%	-23.31%	-0.81%
Flight Centre	N/A	N/A	N/A

Risk and Volatility

Lucky Strike Entertainment has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Flight Centre has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500.

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 Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.