Boyd Gaming Corporation (NYSE: BYD) and Caesars Entertainment Corporation (NASDAQ:CZR) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

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, Caesars Entertainment Corporation has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Earnings & Valuation

This table compares Boyd Gaming Corporation and Caesars Entertainment Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Boyd Gaming Corporation $2.29 billion 1.29 $525.83 million $3.81 6.87
Caesars Entertainment Corporation $3.90 billion 0.46 $795.00 million ($21.45) -0.56

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

Dividends

Boyd Gaming Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Caesars Entertainment Corporation does not pay a dividend. Boyd Gaming Corporation pays out 5.2% of its earnings in the form of a dividend.

Profitability

This table compares Boyd Gaming Corporation and Caesars Entertainment Corporation’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%
Caesars Entertainment Corporation -81.33% N/A -33.98%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Boyd Gaming Corporation and Caesars Entertainment Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boyd Gaming Corporation 0 4 10 0 2.71
Caesars Entertainment Corporation 0 0 5 0 3.00

Boyd Gaming Corporation presently has a consensus target price of $26.79, indicating a potential upside of 2.27%. Caesars Entertainment Corporation has a consensus target price of $14.90, indicating a potential upside of 23.65%. Given Caesars Entertainment Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Caesars Entertainment Corporation is more favorable than Boyd Gaming Corporation.

Insider and Institutional Ownership

71.1% of Boyd Gaming Corporation shares are owned by institutional investors. Comparatively, 68.4% of Caesars Entertainment Corporation shares are owned by institutional investors. 29.2% of Boyd Gaming Corporation shares are owned by insiders. Comparatively, 4.6% of Caesars Entertainment Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Boyd Gaming Corporation beats Caesars Entertainment Corporation on 10 of the 15 factors compared between the two stocks.

About Boyd Gaming Corporation

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.

About Caesars Entertainment Corporation

Caesars Entertainment Corporation is a holding company. The Company provides casino-entertainment and hospitality services. The Company’s segments include Caesars Entertainment Resort Properties, LLC (CERP), Caesars Growth Partners, LLC (CGP) and Other. The Company’s facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. As of July 14, 2017, the Company through its subsidiaries, operates 47 casinos in 13 states and in five countries. As of December 31, 2017, the Company has over one million square feet of gaming space and approximately 24,000 hotel rooms. As of December 31, 2016, CERP owned six casinos in the United States and The LINQ promenade along with leasing Octavius Tower at Caesars Palace Las Vegas (Octavius Tower) to Caesars Entertainment Operating Company (CEOC) and gaming space at The LINQ promenade to CGP. As of December 31, 2016, CGP owned six casinos in the United States.

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