Critical Review: Alliance Entertainment (NASDAQ:AENT) vs. Celtic (OTCMKTS:CLTFF)

Celtic (OTCMKTS:CLTFF) and Alliance Entertainment (NASDAQ:AENT) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Valuation and Earnings

This table compares Celtic and Alliance Entertainment’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celtic	N/A	N/A	N/A	$0.09	31.40
Alliance Entertainment	$1.11 billion	0.06	-$35.40 million	($0.05)	-27.18

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

Analyst Ratings

This is a breakdown of current recommendations for Celtic and Alliance Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celtic	0	0	0	0	N/A
Alliance Entertainment	0	0	0	0	N/A

Institutional and Insider Ownership

9.3% of Celtic shares are held by institutional investors. Comparatively, 0.3% of Alliance Entertainment shares are held by institutional investors. 19.7% of Alliance Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Celtic	N/A	N/A	N/A
Alliance Entertainment	-0.23%	-3.08%	-0.67%

Summary

Celtic beats Alliance Entertainment on 6 of the 8 factors compared between the two stocks.

About Celtic

Celtic plc, through its subsidiary, Celtic F.C. Limited, operates a professional football club in the United Kingdom. The company operates through three segments: Football and Stadium Operations, Merchandising, and Multimedia and Other Commercial Activities. It is involved in the operation of a professional football club covering various activities, including football operations and investment; operation of the Celtic FC Youth Academy; match ticketing; merchandising; partner programs; marketing and brand protection; multimedia; stadium operations; facilities and property; catering and hospitality; public and supporter relations; and human resources. The company also engages in the retail, wholesale, and e-commerce activities; and sale of television rights and sponsorships. Celtic plc was founded in 1887 and is based in Glasgow, the United Kingdom.

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.