Contrasting Boyd Gaming Corporation (BYD) and Churchill Downs, (CHDN)
Boyd Gaming Corporation (NYSE: BYD) and Churchill Downs, (NASDAQ:CHDN) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitabiliy.
Boyd Gaming Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Churchill Downs, pays an annual dividend of $1.32 per share and has a dividend yield of 0.7%. Boyd Gaming Corporation pays out 5.2% of its earnings in the form of a dividend. Churchill Downs, pays out 17.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Boyd Gaming Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Boyd Gaming Corporation and Churchill Downs,’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Boyd Gaming Corporation||$2.29 billion||1.32||$527.23 million||$3.81||7.00|
|Churchill Downs,||$1.31 billion||2.37||$308.00 million||$7.37||26.18|
Boyd Gaming Corporation has higher revenue and earnings than Churchill Downs,. Boyd Gaming Corporation is trading at a lower price-to-earnings ratio than Churchill Downs,, indicating that it is currently the more affordable of the two stocks.
This table compares Boyd Gaming Corporation and Churchill Downs,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boyd Gaming Corporation||19.15%||13.31%||2.79%|
Institutional and Insider Ownership
71.0% of Boyd Gaming Corporation shares are owned by institutional investors. Comparatively, 74.5% of Churchill Downs, shares are owned by institutional investors. 29.2% of Boyd Gaming Corporation shares are owned by company insiders. Comparatively, 18.4% of Churchill Downs, shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Boyd Gaming Corporation has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Churchill Downs, has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Boyd Gaming Corporation and Churchill Downs,, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boyd Gaming Corporation||0||4||10||0||2.71|
Boyd Gaming Corporation presently has a consensus target price of $26.79, indicating a potential upside of 0.43%. Churchill Downs, has a consensus target price of $183.33, indicating a potential downside of 4.98%. Given Boyd Gaming Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Boyd Gaming Corporation is more favorable than Churchill Downs,.
Boyd Gaming Corporation beats Churchill Downs, on 10 of the 16 factors compared between the two stocks.
Boyd Gaming Corporation Company Profile
Boyd Gaming Corporation is a multi-jurisdictional gaming company. The Company operated 24 wholly owned gaming entertainment properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi, as of December 31, 2016. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest and South. It owns and operates a travel agency and a captive insurance company that underwrites travel-related insurance, each located in Hawaii. The Company’s Las Vegas Locals segment includes properties, such as Gold Coast Hotel and Casino, The Orleans Hotel and Casino, and Sam’s Town Hotel and Gambling Hall. The Downtown Las Vegas segment includes three properties, such as California Hotel and Casino Fremont Hotel and Casino and Main Street Station Casino, Brewery and Hotel Street Station. Its Midwest and South segment’s properties include Par-A-Dice Hotel Casino, Diamond Jo Dubuque, Diamond Jo Worth, Kansas Star Casino, Amelia Belle Casino and Evangeline Downs.
Churchill Downs, Company Profile
Churchill Downs Incorporated is a racing, gaming and online entertainment company. The Company is engaged in brick-and-mortar casino gaming with approximately 9,030 gaming positions in seven states, and is a legal mobile and online platform for betting on horseracing in the United States. It operates through six segments: Racing, Casinos, TwinSpires, Big Fish Games, Other Investments and Corporate. Racing includes four racetracks: Churchill Downs Racetrack, Arlington International Race Course, Fair Grounds Race Course and Calder Race Course. Casinos is a provider of brick-and-mortar real-money casino gaming. TwinSpires operates mobile and online wagering business, which is a platform for betting on horseracing. Big Fish Games, Inc. is a producer and distributor of social casino, casual and mid-core free-to-play and premium paid games for personal computer (PC), Mac and mobile devices. Other Investments includes United Tote and Capital View Casino & Resort Joint Venture (Capital View).
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