Reviewing OneSpaWorld (NASDAQ:OSW) & Caesars Entertainment (NASDAQ:CZR)

OneSpaWorld (NASDAQ:OSWGet Free Report) and Caesars Entertainment (NASDAQ:CZRGet Free Report) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Insider and Institutional Ownership

96.0% of OneSpaWorld shares are owned by institutional investors. Comparatively, 91.8% of Caesars Entertainment shares are owned by institutional investors. 3.9% of OneSpaWorld shares are owned by insiders. Comparatively, 1.0% of Caesars Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for OneSpaWorld and Caesars Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneSpaWorld 0 0 7 1 3.13
Caesars Entertainment 1 6 12 1 2.65

OneSpaWorld currently has a consensus target price of $24.60, suggesting a potential upside of 20.29%. Caesars Entertainment has a consensus target price of $35.39, suggesting a potential upside of 44.27%. Given Caesars Entertainment’s higher probable upside, analysts plainly believe Caesars Entertainment is more favorable than OneSpaWorld.

Earnings and Valuation

This table compares OneSpaWorld 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
OneSpaWorld $895.02 million 2.33 $72.86 million $0.71 28.80
Caesars Entertainment $11.25 billion 0.45 -$278.00 million ($1.15) -21.33

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

Profitability

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

Net Margins Return on Equity Return on Assets
OneSpaWorld 7.90% 16.38% 12.27%
Caesars Entertainment -2.12% -5.76% -0.75%

Volatility & Risk

OneSpaWorld has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Summary

OneSpaWorld beats Caesars Entertainment on 10 of the 14 factors compared between the two stocks.

About OneSpaWorld

(Get Free Report)

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.

About Caesars Entertainment

(Get Free Report)

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

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