Critical Survey: Churchill Downs (NASDAQ:CHDN) & DouYu International (NASDAQ:DOYU)

DouYu International (NASDAQ:DOYU) and Churchill Downs (NASDAQ:CHDN) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for DouYu International and Churchill Downs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	1	3	0	0	1.75
Churchill Downs	0	1	9	1	3.00

DouYu International presently has a consensus price target of $7.00, suggesting a potential upside of 1.97%. Churchill Downs has a consensus price target of $133.30, suggesting a potential upside of 16.84%. Given Churchill Downs’ stronger consensus rating and higher possible upside, analysts clearly believe Churchill Downs is more favorable than DouYu International.

Risk & Volatility

DouYu International has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares DouYu International and Churchill Downs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$585.10 million	0.35	-$42.03 million	($0.88)	-7.80
Churchill Downs	$2.73 billion	2.91	$426.80 million	$5.50	20.74

Churchill Downs has higher revenue and earnings than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

17.9% of DouYu International shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 17.3% of DouYu International shares are owned by insiders. Comparatively, 5.3% of Churchill Downs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares DouYu International and Churchill Downs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DouYu International	-4.74%	-1.57%	-1.07%
Churchill Downs	13.99%	42.54%	6.11%

Summary

Churchill Downs beats DouYu International on 13 of the 14 factors compared between the two stocks.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.