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

Valuation and Earnings

This table compares SeaWorld Entertainment and Cedar Fair, L.P.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SeaWorld Entertainment $1.31 billion 0.95 $271.39 million $0.12 121.59
Cedar Fair, L.P. $1.28 billion 3.04 $450.35 million $2.85 24.27

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

Dividends

SeaWorld Entertainment pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Cedar Fair, L.P. pays an annual dividend of $3.42 per share and has a dividend yield of 4.9%. 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. Cedar Fair, L.P. pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SeaWorld Entertainment has raised its dividend for 3 consecutive years and Cedar Fair, L.P. has raised its dividend for 4 consecutive years. Cedar Fair, L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and target prices for SeaWorld Entertainment and Cedar Fair, L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaWorld Entertainment 3 3 8 0 2.36
Cedar Fair, L.P. 0 1 6 0 2.86

SeaWorld Entertainment presently has a consensus target price of $17.75, suggesting a potential upside of 21.66%. Cedar Fair, L.P. has a consensus target price of $74.29, suggesting a potential upside of 7.38%. Given SeaWorld Entertainment’s higher probable upside, equities research analysts clearly believe SeaWorld Entertainment is more favorable than Cedar Fair, L.P..

Risk & Volatility

SeaWorld Entertainment has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Cedar Fair, L.P. has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Institutional and Insider Ownership

51.9% of Cedar Fair, L.P. shares are owned by institutional investors. 3.4% of SeaWorld Entertainment shares are owned by insiders. Comparatively, 2.0% of Cedar Fair, L.P. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares SeaWorld Entertainment and Cedar Fair, L.P.’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%
Cedar Fair, L.P. 12.63% 724.36% 8.06%

Summary

Cedar Fair, L.P. beats SeaWorld Entertainment on 10 of the 17 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).

Cedar Fair, L.P. Company Profile

Cedar Fair, L.P. is an operator of regional amusement parks. The Company operates within a segment of amusement/water parks with accompanying resort facilities. As of December 31, 2016, the Company owned approximately 11 amusement parks, two separately gated outdoor water parks, one indoor water park and five hotels. The amusement parks include Cedar Point, located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott’s Berry Farm, near Los Angeles, California; Canada’s Wonderland, near Toronto, Canada; Kings Island, near Cincinnati, Ohio; Carowinds, in Charlotte, North Carolina; Dorney Park & Wildwater Kingdom (Dorney Park), in Allentown, Pennsylvania; Kings Dominion, near Richmond, Virginia; California’s Great America, in Santa Clara, California; Valleyfair, near Minneapolis/St. Paul, Minnesota; Worlds of Fun, in Kansas City, Missouri, and Michigan’s Adventure, in Muskegon, Michigan. It manages and operates Gilroy Gardens Family Theme Park in Gilroy, California.

Receive News & Ratings for SeaWorld Entertainment Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SeaWorld Entertainment Inc. and related companies with MarketBeat.com's FREE daily email newsletter.