Head to Head Comparison: SJM (OTCMKTS:SJMHF) versus Bally’s (NYSE:BALY)

Bally’s (NYSE:BALY) and SJM (OTCMKTS:SJMHF) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings for Bally’s and SJM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	2	4	0	0	1.67
SJM	0	2	0	0	2.00

Bally’s presently has a consensus price target of $16.50, suggesting a potential upside of 0.00%. Given Bally’s’ higher probable upside, equities analysts plainly believe Bally’s is more favorable than SJM.

Profitability

This table compares Bally’s and SJM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-17.41%	-63.71%	-4.45%
SJM	N/A	N/A	N/A

Risk & Volatility

Bally’s has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, SJM has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bally’s and SJM”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.45 billion	0.33	-$567.75 million	($4.88)	-3.38
SJM	$3.69 billion	0.58	$410,000.00	N/A	N/A

SJM has higher revenue and earnings than Bally’s.

Institutional & Insider Ownership

70.4% of Bally’s shares are owned by institutional investors. 74.9% of Bally’s shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

SJM beats Bally’s on 7 of the 11 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.