Critical Analysis: Galaxy Gaming (OTCMKTS:GLXZ) & Lucky Strike Entertainment (NYSE:LUCK)

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

Profitability

This table compares Lucky Strike Entertainment and Galaxy Gaming’s 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%
Galaxy Gaming	-8.30%	N/A	-6.24%

Risk & Volatility

Lucky Strike Entertainment has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Institutional & Insider Ownership

68.1% of Lucky Strike Entertainment shares are held by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are held by institutional investors. 79.9% of Lucky Strike Entertainment shares are held by company insiders. Comparatively, 21.9% of Galaxy Gaming shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Lucky Strike Entertainment and Galaxy Gaming”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucky Strike Entertainment	$1.15 billion	1.36	-$83.58 million	($0.01)	-1,099.90
Galaxy Gaming	$27.79 million	2.60	-$1.81 million	($0.10)	-28.73

Galaxy Gaming has lower revenue, but higher earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Galaxy Gaming, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lucky Strike Entertainment and Galaxy Gaming, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucky Strike Entertainment	0	1	0	0	2.00
Galaxy Gaming	0	0	0	0	0.00

Lucky Strike Entertainment currently has a consensus price target of $12.00, indicating a potential upside of 8.99%. Given Lucky Strike Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Lucky Strike Entertainment is more favorable than Galaxy Gaming.

Summary

Lucky Strike Entertainment beats Galaxy Gaming on 8 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 Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.