Head to Head Comparison: Churchill Downs (NASDAQ:CHDN) and Skillz (NYSE:SKLZ)

Skillz (NYSE:SKLZ) and Churchill Downs (NASDAQ:CHDN) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Valuation and Earnings

This table compares Skillz and Churchill Downs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillz	$95.47 million	0.72	-$46.79 million	($4.14)	-1.09
Churchill Downs	$2.73 billion	2.73	$426.80 million	$5.50	19.43

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

Risk and Volatility

Skillz has a beta of 2.89, suggesting that its stock price is 189% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Insider and Institutional Ownership

19.4% of Skillz shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 38.3% of Skillz shares are owned by insiders. Comparatively, 5.3% of Churchill Downs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skillz	-69.44%	-50.96%	-22.19%
Churchill Downs	13.99%	42.54%	6.11%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Skillz and Churchill Downs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillz	1	0	1	0	2.00
Churchill Downs	0	1	12	0	2.92

Skillz presently has a consensus target price of $15.00, suggesting a potential upside of 231.86%. Churchill Downs has a consensus target price of $135.36, suggesting a potential upside of 26.65%. Given Skillz’s higher possible upside, equities research analysts clearly believe Skillz is more favorable than Churchill Downs.

Summary

Churchill Downs beats Skillz on 11 of the 14 factors compared between the two stocks.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.

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.