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

Earnings and Valuation

This table compares Churchill Downs, and Caesars Entertainment Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Churchill Downs, $1.31 billion 2.48 $308.00 million $7.37 27.33
Caesars Entertainment Corporation $3.90 billion 0.45 $795.00 million ($21.45) -0.55

Caesars Entertainment Corporation has higher revenue and earnings than Churchill Downs,. Caesars Entertainment 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.

Insider and Institutional Ownership

73.8% of Churchill Downs, shares are owned by institutional investors. Comparatively, 76.7% of Caesars Entertainment Corporation shares are owned by institutional investors. 18.4% of Churchill Downs, shares are owned by insiders. Comparatively, 4.6% of Caesars Entertainment Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Churchill Downs, and Caesars Entertainment Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Churchill Downs, 9.22% 15.83% 4.69%
Caesars Entertainment Corporation -81.33% N/A -33.98%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Churchill Downs, and Caesars Entertainment Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Churchill Downs, 0 3 1 0 2.25
Caesars Entertainment Corporation 0 0 6 0 3.00

Churchill Downs, presently has a consensus target price of $188.00, indicating a potential downside of 6.65%. Caesars Entertainment Corporation has a consensus target price of $14.75, indicating a potential upside of 25.00%. Given Caesars Entertainment Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Caesars Entertainment Corporation is more favorable than Churchill Downs,.

Dividends

Churchill Downs, pays an annual dividend of $1.32 per share and has a dividend yield of 0.7%. Caesars Entertainment Corporation does not pay a dividend. Churchill Downs, pays out 17.9% of its earnings in the form of a dividend.

Risk & Volatility

Churchill Downs, has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Caesars Entertainment Corporation has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Summary

Churchill Downs, beats Caesars Entertainment Corporation on 8 of the 15 factors compared between the two stocks.

About Churchill Downs,

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).

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.

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