Critical Survey: Flight Centre (OTCMKTS:FGETF) and Six Flags Entertainment (NYSE:FUN)

Flight Centre (OTCMKTS:FGETF) and Six Flags Entertainment (NYSE:FUN) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Flight Centre has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500. Comparatively, Six Flags Entertainment has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Valuation and Earnings

This table compares Flight Centre and Six Flags Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flight Centre	$1.80 billion	N/A	$70.90 million	N/A	N/A
Six Flags Entertainment	$2.71 billion	0.56	-$231.16 million	($17.72)	-0.85

Flight Centre has higher earnings, but lower revenue than Six Flags Entertainment.

Profitability

This table compares Flight Centre and Six Flags Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flight Centre	N/A	N/A	N/A
Six Flags Entertainment	-56.44%	9.64%	1.70%

Insider and Institutional Ownership

64.7% of Six Flags Entertainment shares are held by institutional investors. 1.8% of Six Flags Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Flight Centre and Six Flags Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flight Centre	0	0	1	1	3.50
Six Flags Entertainment	2	4	9	0	2.47

Six Flags Entertainment has a consensus target price of $28.07, suggesting a potential upside of 86.20%. Given Six Flags Entertainment’s higher probable upside, analysts plainly believe Six Flags Entertainment is more favorable than Flight Centre.

Summary

Six Flags Entertainment beats Flight Centre on 8 of the 12 factors compared between the two stocks.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.