Critical Contrast: Caesars Entertainment (NASDAQ:CZR) vs. Flight Centre (OTCMKTS:FGETF)

Flight Centre (OTCMKTS:FGETF) and Caesars Entertainment (NASDAQ:CZR) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Flight Centre and Caesars Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flight Centre	0	0	1	1	3.50
Caesars Entertainment	1	14	4	0	2.16

Caesars Entertainment has a consensus target price of $32.53, indicating a potential upside of 10.54%. Given Caesars Entertainment’s higher probable upside, analysts clearly believe Caesars Entertainment is more favorable than Flight Centre.

Valuation and Earnings

This table compares Flight Centre and Caesars Entertainment”s top-line 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	1.05	$70.90 million	N/A	N/A
Caesars Entertainment	$11.49 billion	0.52	-$502.00 million	($2.37)	-12.42

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

Insider and Institutional Ownership

91.8% of Caesars Entertainment shares are held by institutional investors. 1.2% of Caesars Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Flight Centre has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Profitability

This table compares Flight Centre and Caesars 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
Caesars Entertainment	-4.19%	-7.88%	-0.95%

Summary

Flight Centre beats Caesars Entertainment on 7 of the 13 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 Caesars Entertainment

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.