Head-To-Head Survey: Alliance Entertainment (NASDAQ:AENT) and GigaCloud Technology (NASDAQ:GCT)

GigaCloud Technology (NASDAQ:GCT) and Alliance Entertainment (NASDAQ:AENT) 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 earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for GigaCloud Technology and Alliance Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaCloud Technology	0	2	0	0	2.00
Alliance Entertainment	0	2	1	0	2.33

Alliance Entertainment has a consensus price target of $10.00, indicating a potential upside of 77.78%. Given Alliance Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Alliance Entertainment is more favorable than GigaCloud Technology.

Earnings & Valuation

This table compares GigaCloud Technology and Alliance Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaCloud Technology	$1.29 billion	1.47	$137.37 million	$4.23	12.19
Alliance Entertainment	$1.11 billion	0.26	$15.08 million	$0.44	12.78

GigaCloud Technology has higher revenue and earnings than Alliance Entertainment. GigaCloud Technology is trading at a lower price-to-earnings ratio than Alliance Entertainment, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GigaCloud Technology and Alliance Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GigaCloud Technology	10.65%	31.42%	12.93%
Alliance Entertainment	2.01%	19.91%	5.71%

Insider & Institutional Ownership

34.9% of GigaCloud Technology shares are owned by institutional investors. Comparatively, 0.3% of Alliance Entertainment shares are owned by institutional investors. 23.4% of GigaCloud Technology shares are owned by company insiders. Comparatively, 77.5% of Alliance Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

GigaCloud Technology has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Alliance Entertainment has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Summary

GigaCloud Technology beats Alliance Entertainment on 9 of the 14 factors compared between the two stocks.

About GigaCloud Technology

GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.

About Alliance Entertainment

Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.