Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) and TKO Group (NYSE:TKO – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Volatility and Risk
Lucky Strike Entertainment has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, TKO Group has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Valuation & Earnings
This table compares Lucky Strike Entertainment and TKO Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lucky Strike Entertainment | $1.18 billion | 1.17 | -$83.58 million | ($0.01) | -967.00 |
| TKO Group | $2.80 billion | 8.50 | $208.18 million | $0.02 | 6,962.75 |
Analyst Ratings
This is a breakdown of current ratings for Lucky Strike Entertainment and TKO Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lucky Strike Entertainment | 0 | 1 | 0 | 0 | 2.00 |
| TKO Group | 0 | 2 | 11 | 1 | 2.93 |
Lucky Strike Entertainment presently has a consensus price target of $12.00, suggesting a potential upside of 24.10%. TKO Group has a consensus price target of $157.00, suggesting a potential upside of 12.74%. Given Lucky Strike Entertainment’s higher probable upside, equities analysts clearly believe Lucky Strike Entertainment is more favorable than TKO Group.
Profitability
This table compares Lucky Strike Entertainment and TKO Group’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% |
| TKO Group | -1.26% | 3.39% | 2.32% |
Dividends
Lucky Strike Entertainment pays an annual dividend of $0.22 per share and has a dividend yield of 2.3%. TKO Group pays an annual dividend of $1.52 per share and has a dividend yield of 1.1%. Lucky Strike Entertainment pays out -2,200.0% of its earnings in the form of a dividend. TKO Group pays out 7,600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lucky Strike Entertainment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
68.1% of Lucky Strike Entertainment shares are held by institutional investors. Comparatively, 89.8% of TKO Group shares are held by institutional investors. 79.9% of Lucky Strike Entertainment shares are held by insiders. Comparatively, 53.8% of TKO Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
TKO Group beats Lucky Strike Entertainment on 12 of the 17 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 TKO Group
TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.
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