SeaWorld Entertainment (NYSE: SEAS) and Six Flags Entertainment Corporation New (NYSE:SIX) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitabiliy and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for SeaWorld Entertainment and Six Flags Entertainment Corporation New, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaWorld Entertainment 4 2 8 0 2.29
Six Flags Entertainment Corporation New 0 3 8 0 2.73

SeaWorld Entertainment currently has a consensus price target of $17.75, suggesting a potential upside of 8.56%. Six Flags Entertainment Corporation New has a consensus price target of $66.50, suggesting a potential upside of 10.03%. Given Six Flags Entertainment Corporation New’s stronger consensus rating and higher probable upside, analysts plainly believe Six Flags Entertainment Corporation New is more favorable than SeaWorld Entertainment.

Insider and Institutional Ownership

87.1% of Six Flags Entertainment Corporation New shares are held by institutional investors. 3.4% of SeaWorld Entertainment shares are held by company insiders. Comparatively, 6.9% of Six Flags Entertainment Corporation New shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

SeaWorld Entertainment pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Six Flags Entertainment Corporation New pays an annual dividend of $2.56 per share and has a dividend yield of 4.2%. SeaWorld Entertainment pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Six Flags Entertainment Corporation New pays out 226.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SeaWorld Entertainment has increased its dividend for 7 consecutive years and Six Flags Entertainment Corporation New has increased its dividend for 3 consecutive years.

Valuation and Earnings

This table compares SeaWorld Entertainment and Six Flags Entertainment Corporation New’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SeaWorld Entertainment $1.31 billion 1.07 $271.39 million $0.12 136.26
Six Flags Entertainment Corporation New $1.30 billion 4.21 $406.63 million $1.13 53.49

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

Profitability

This table compares SeaWorld Entertainment and Six Flags Entertainment Corporation New’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SeaWorld Entertainment 0.79% 3.66% 0.66%
Six Flags Entertainment Corporation New 8.26% -89.39% 4.24%

Risk & Volatility

SeaWorld Entertainment has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Six Flags Entertainment Corporation New has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Summary

Six Flags Entertainment Corporation New beats SeaWorld Entertainment on 11 of the 16 factors compared between the two stocks.

SeaWorld Entertainment Company Profile

SeaWorld Entertainment, Inc. is a theme park and entertainment company. The Company owns or licenses a portfolio of brands, including SeaWorld, Sea Rescue and Busch Gardens. As of December 31, 2016, the Company had a diversified portfolio of 12 destination and regional theme parks that are located across the United States. Its theme parks feature a range of rides, shows and other attractions. The Company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas (Aquatica); San Diego, California (Aquatica); Tampa, Florida (Adventure Island), and Williamsburg, Virginia (Water Country USA). The Company operates water park attractions in Orlando, Florida (Aquatica); San Diego, California (Aquatica); Tampa, Florida (Adventure Island), and Williamsburg, Virginia (Water Country USA). The Company also operates a reservations-only attraction offering interaction with marine animals (Discovery Cove) and a seasonal park in Langhorne, Pennsylvania (Sesame Place).

Six Flags Entertainment Corporation New Company Profile

Six Flags Entertainment Corporation (Six Flags) is a regional theme park operator. The Company operates in the theme parks segment. The Company operates approximately 19 regional theme and water parks. Its parks occupy approximately 4,500 acres of land. Its parks are located in geographically diverse markets across North America. Its parks offer a selection of thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues and retail outlets. Its parks offer approximately 830 rides, including over 135 roller coasters. The Company’s parks include Six Flags America, Six Flags Discovery Kingdom, Six Flags Fiesta Texas, Six Flags Great Adventure & Safari/ Six Flags Hurricane Harbor, Six Flags Great America, Six Flags St. Louis, Six Flags Magic Mountain/ Six Flags Hurricane Harbor, Six Flags Mexico and Six Flags New England.

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