Critical Contrast: Lucky Strike Entertainment (LUCK) vs. The Competition

Lucky Strike Entertainment (NYSE:LUCK) is one of 42 publicly-traded companies in the “Amusement & recreation services” industry, but how does it contrast to its rivals? We will compare Lucky Strike Entertainment to related businesses based on the strength of its valuation, profitability, risk, institutional ownership, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

68.1% of Lucky Strike Entertainment shares are owned by institutional investors. Comparatively, 46.8% of shares of all “Amusement & recreation services” companies are owned by institutional investors. 79.9% of Lucky Strike Entertainment shares are owned by company insiders. Comparatively, 33.5% of shares of all “Amusement & recreation services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Lucky Strike Entertainment pays an annual dividend of $0.22 per share and has a dividend yield of 2.1%. Lucky Strike Entertainment pays out -2,197.8% of its earnings in the form of a dividend. As a group, “Amusement & recreation services” companies pay a dividend yield of 1.5% and pay out -85.8% of their earnings in the form of a dividend. Lucky Strike Entertainment is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility & Risk

Lucky Strike Entertainment has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Lucky Strike Entertainment’s rivals have a beta of 1.51, meaning that their average share price is 51% more volatile than the S&P 500.

Profitability

This table compares Lucky Strike Entertainment and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucky Strike Entertainment	1.11%	-35.76%	1.68%
Lucky Strike Entertainment Competitors	-16.64%	-1.13%	-3.98%

Valuation and Earnings

This table compares Lucky Strike Entertainment and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lucky Strike Entertainment	$1.15 billion	-$83.58 million	-1,061.94
Lucky Strike Entertainment Competitors	$1.71 billion	$10.85 million	-77.00

Lucky Strike Entertainment’s rivals have higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for Lucky Strike Entertainment and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucky Strike Entertainment	0	1	0	0	2.00
Lucky Strike Entertainment Competitors	50	355	803	8	2.63

Lucky Strike Entertainment presently has a consensus target price of $12.00, indicating a potential upside of 12.89%. As a group, “Amusement & recreation services” companies have a potential upside of 6.84%. Given Lucky Strike Entertainment’s higher probable upside, equities research analysts clearly believe Lucky Strike Entertainment is more favorable than its rivals.

Lucky Strike Entertainment Company Profile

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.