Analyzing Lucky Strike Entertainment (LUCK) & Its Rivals

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

Profitability

This table compares Lucky Strike Entertainment and its peers’ 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	-16.33%	-3.84%	-4.01%

Risk & Volatility

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lucky Strike Entertainment	$1.15 billion	-$83.58 million	-1,095.90
Lucky Strike Entertainment Competitors	$1.73 billion	$10.85 million	-74.37

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Lucky Strike Entertainment and its peers, 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	44	352	796	8	2.64

Lucky Strike Entertainment presently has a consensus target price of $12.00, suggesting a potential upside of 9.39%. As a group, “Amusement & recreation services” companies have a potential upside of 3.49%. Given Lucky Strike Entertainment’s higher probable upside, research analysts clearly believe Lucky Strike Entertainment is more favorable than its peers.

Dividends

Lucky Strike Entertainment pays an annual dividend of $0.22 per share and has a dividend yield of 2.0%. 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 peers, given its higher yield and lower payout ratio.

Summary

Lucky Strike Entertainment peers beat Lucky Strike Entertainment on 8 of the 15 factors compared.

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.