Critical Contrast: Caesars Entertainment Corporation (CZR) & Isle of Capri Casinos (ISLE)

Caesars Entertainment Corporation (NASDAQ: CZR) and Isle of Capri Casinos (NASDAQ:ISLE) are both casinos & gaming – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Caesars Entertainment Corporation and Isle of Capri Casinos’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Caesars Entertainment Corporation $3.88 billion 2.24 -$3.57 billion ($20.44) -0.60
Isle of Capri Casinos N/A N/A N/A $1.50 15.32

Isle of Capri Casinos has higher revenue, but lower earnings than Caesars Entertainment Corporation. Caesars Entertainment Corporation is trading at a lower price-to-earnings ratio than Isle of Capri Casinos, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Caesars Entertainment Corporation and Isle of Capri Casinos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caesars Entertainment Corporation -76.85% N/A -9.01%
Isle of Capri Casinos 3.12% 21.43% 2.01%

Analyst Ratings

This is a breakdown of recent recommendations for Caesars Entertainment Corporation and Isle of Capri Casinos, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Entertainment Corporation 0 2 6 0 2.75
Isle of Capri Casinos 0 0 1 0 3.00

Caesars Entertainment Corporation currently has a consensus target price of $14.56, indicating a potential upside of 18.20%. Given Caesars Entertainment Corporation’s higher possible upside, equities analysts clearly believe Caesars Entertainment Corporation is more favorable than Isle of Capri Casinos.

Institutional and Insider Ownership

16.6% of Caesars Entertainment Corporation shares are owned by institutional investors. Comparatively, 53.9% of Isle of Capri Casinos shares are owned by institutional investors. 4.6% of Caesars Entertainment Corporation shares are owned by company insiders. Comparatively, 38.2% of Isle of Capri Casinos shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Isle of Capri Casinos beats Caesars Entertainment Corporation on 7 of the 10 factors compared between the two stocks.

About Caesars Entertainment Corporation

Caesars Entertainment Corporation is a holding company. The Company provides casino-entertainment and hospitality services. The Company’s segments include Caesars Entertainment Resort Properties, LLC (CERP), Caesars Growth Partners, LLC (CGP) and Other. The Company’s resorts operate primarily under the Harrah’s, Caesars and Horseshoe brand names. The Company also owns the London clubs international family of casinos. The Company’s facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. As of July 14, 2017, the Company through its subsidiaries, operates 47 casinos in 13 states and five countries. As of December 31, 2016, CERP owned six casinos in the United States and The LINQ promenade along with leasing Octavius Tower at Caesars Palace Las Vegas (Octavius Tower) to Caesars Entertainment Operating Company (CEOC) and gaming space at The LINQ promenade to CGP.

About Isle of Capri Casinos

Isle of Capri Casinos, Inc. is a developer, owner and operator of branded gaming facilities and related dining, lodging and entertainment facilities in regional markets in the United States. The Company owns or operates over 10 gaming and entertainment facilities in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri and Pennsylvania. Collectively, these properties feature over 12,000 slot machines and 300 table games (including approximately 80 poker tables), 2,200 hotel rooms and 40 restaurants. The Company also operates a harness racing track at its casino in Florida. The Company operates under two brands: Isle and Lady Luck. The Company’s casino properties include Isle Casino Hotel-Black Hawk, Lady Luck Casino-Black Hawk, Pompano Park, Bettendorf, Marquette, Waterloo, Lake Charles, Lula, Vicksburg, Boonville, Cape Girardeau, Caruthersville, Kansas City and Nemacolin.

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