Caesars Entertainment (NASDAQ: CZR) and Peak Resorts (NASDAQ:SKIS) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
95.7% of Caesars Entertainment shares are held by institutional investors. Comparatively, 44.7% of Peak Resorts shares are held by institutional investors. 5.8% of Caesars Entertainment shares are held by insiders. Comparatively, 16.5% of Peak Resorts shares are held by 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.
Risk & Volatility
Caesars Entertainment has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Peak Resorts has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
This table compares Caesars Entertainment and Peak Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Caesars Entertainment and Peak Resorts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Caesars Entertainment currently has a consensus target price of $14.72, indicating a potential upside of 21.17%. Peak Resorts has a consensus target price of $6.17, indicating a potential upside of 19.74%. Given Caesars Entertainment’s higher possible upside, research analysts plainly believe Caesars Entertainment is more favorable than Peak Resorts.
Peak Resorts pays an annual dividend of $0.28 per share and has a dividend yield of 5.4%. Caesars Entertainment does not pay a dividend. Peak Resorts pays out -112.0% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Caesars Entertainment and Peak Resorts’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Caesars Entertainment||$4.85 billion||1.74||-$375.00 million||($14.05)||-0.86|
|Peak Resorts||$123.25 million||0.58||$1.24 million||($0.25)||-20.60|
Peak Resorts has lower revenue, but higher earnings than Caesars Entertainment. Peak Resorts is trading at a lower price-to-earnings ratio than Caesars Entertainment, indicating that it is currently the more affordable of the two stocks.
Peak Resorts beats Caesars Entertainment on 10 of the 16 factors compared between the two stocks.
About Caesars Entertainment
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 Peak Resorts
Peak Resorts, Inc. is a holding company. The Company, through its subsidiaries, owns or leases, and operates day ski and overnight drive ski resorts. The Company’s ski resort operations consist of snow skiing, snowboarding and snow sports areas in Wildwood and Weston, Missouri; Bellefontaine and Cleveland, Ohio; Paoli, Indiana; Blakeslee and Lake Harmony, Pennsylvania; Bartlett, Bennington and Pinkham Notch, New Hampshire; West Dover, Vermont, and Hunter, New York, and an 18 hole golf course in West Dover, Vermont. It also manages hotels in Bartlett, New Hampshire; West Dover, Vermont, and Hunter, New York. As of April 30, 2016, the Company operates 14 ski resorts, which consist of six overnight drive ski resorts and eight day ski resorts located across seven states, ranging from Missouri to New Hampshire, and appeal to a range of visitors. As of April 30, 2016, the Company’s resorts comprises approximately 1,860 acres of skiable terrain that appeal to a range of ages and abilities.
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