Century Casinos (NASDAQ: CNTY) and Caesars Entertainment (NASDAQ:CZR) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Century Casinos and Caesars Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Century Casinos 0 1 2 0 2.67
Caesars Entertainment 0 3 5 0 2.63

Century Casinos currently has a consensus target price of $12.00, indicating a potential upside of 52.67%. Caesars Entertainment has a consensus target price of $14.94, indicating a potential upside of 33.37%. Given Century Casinos’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Century Casinos is more favorable than Caesars Entertainment.

Risk & Volatility

Century Casinos has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Valuation & Earnings

This table compares Century Casinos and Caesars Entertainment’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Century Casinos $154.07 million 1.50 $6.25 million $0.45 17.47
Caesars Entertainment $4.85 billion 1.61 -$375.00 million ($3.37) -3.32

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

Profitability

This table compares Century Casinos and Caesars Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Century Casinos 4.06% 7.35% 4.88%
Caesars Entertainment -9.38% N/A -3.71%

Insider & Institutional Ownership

76.5% of Century Casinos shares are owned by institutional investors. Comparatively, 95.5% of Caesars Entertainment shares are owned by institutional investors. 14.5% of Century Casinos shares are owned by company insiders. Comparatively, 4.6% of Caesars Entertainment 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

Century Casinos beats Caesars Entertainment on 9 of the 14 factors compared between the two stocks.

Century Casinos Company Profile

Century Casinos, Inc. operates as a casino entertainment company worldwide. The company develops and operates gaming establishments, as well as related lodging, restaurant, horse racing, and entertainment facilities. It owns and operates casinos in North America and Poland; a racetrack and entertainment center in Canada; and pari-mutuel off-track betting network in southern Alberta, Canada. The company also manages cruise ship-based casinos; and provides gaming services in Argentina. As of March 9, 2018, it operated 14 ship-based casinos. The company was founded in 1992 and is based in Colorado Springs, Colorado.

Caesars Entertainment Company Profile

Caesars Entertainment Corporation, through its subsidiaries, provides casino-entertainment and hospitality services in the United States and internationally. The company operates 36,000 slot machines and 2,700 table games, as well as other games comprising keno, poker, and race and sports books; and buffets, restaurants, bars, nightclubs, and lounges located throughout its casinos, as well as banquets and room service. As of March 7, 2018, it owned and operated 47 casinos. It also provides various retail and entertainment offerings in its casinos, as well as The LINQ promenade, an open-air dining, entertainment, and retail development; and operates various entertainment venues, including the Colosseum at Caesars Palace and Zappos Theater at Planet Hollywood. In addition, the company operates online gaming business that provides real money games; and owns the World Series of Poker tournaments and brand. The company was formerly known as Harrah's Entertainment Inc. and changed its name to Caesars Entertainment Corporation in November 2010. Caesars Entertainment Corporation was founded in 1937 and is based in Las Vegas, Nevada.

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