Critical Survey: GreenTree Hospitality Group (GHG) vs. Caesars Entertainment (CZR)

GreenTree Hospitality Group (NYSE:GHG) and Caesars Entertainment (NASDAQ:CZR) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for GreenTree Hospitality Group and Caesars Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GreenTree Hospitality Group 0 1 2 0 2.67
Caesars Entertainment 1 2 6 0 2.56

GreenTree Hospitality Group currently has a consensus price target of $17.40, indicating a potential upside of 48.21%. Caesars Entertainment has a consensus price target of $13.38, indicating a potential upside of 48.12%. Given GreenTree Hospitality Group’s stronger consensus rating and higher possible upside, research analysts clearly believe GreenTree Hospitality Group is more favorable than Caesars Entertainment.

Insider and Institutional Ownership

10.0% of GreenTree Hospitality Group shares are owned by institutional investors. 0.9% of Caesars Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares GreenTree Hospitality Group and Caesars Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GreenTree Hospitality Group N/A N/A N/A
Caesars Entertainment 21.90% -4.71% -0.32%

Earnings & Valuation

This table compares GreenTree Hospitality Group and Caesars Entertainment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GreenTree Hospitality Group $119.59 million 9.97 $43.86 million N/A N/A
Caesars Entertainment $4.85 billion 1.29 -$375.00 million ($3.37) -2.68

GreenTree Hospitality Group has higher earnings, but lower revenue than Caesars Entertainment.

Summary

GreenTree Hospitality Group beats Caesars Entertainment on 7 of the 11 factors compared between the two stocks.

About GreenTree Hospitality Group

GreenTree Hospitality Group Ltd., through its subsidiaries, owns, operates, leases, franchises, and manages hotels in the People's Republic of China. The company operates hotels under the various brands, including GreenTree Eastern, as well as Gme, Gya, and VX; GreenTree Inns and GreenTree Alliance; and Vatica and Shell. As of March 31, 2018, it had 26 leased-and-operated hotels and 2,328 franchised-and-managed hotels with 195,552 hotel rooms in 266 cities. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China. GreenTree Hospitality Group Ltd. is a subsidiary of GreenTree Inns Hotel Management Group, Inc.

About Caesars Entertainment

Caesars Entertainment Corporation, through its subsidiaries, provides casino-entertainment and hospitality services in the United States and internationally. The company operates 36,000 slot machines and 2,700 table games, as well as other games comprising keno, poker, and race and sports books; and buffets, restaurants, bars, nightclubs, and lounges located throughout its casinos, as well as banquets and room service. As of March 7, 2018, it owned and operated 47 casinos. It also provides various retail and entertainment offerings in its casinos, as well as The LINQ promenade, an open-air dining, entertainment, and retail development; and operates various entertainment venues, including the Colosseum at Caesars Palace and Zappos Theater at Planet Hollywood. In addition, the company operates online gaming business that provides real money games; and owns the World Series of Poker tournaments and brand. The company was formerly known as Harrah's Entertainment Inc. and changed its name to Caesars Entertainment Corporation in November 2010. Caesars Entertainment Corporation was founded in 1937 and is based in Las Vegas, Nevada.

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