Penn National Gaming (NASDAQ:PENN) and The Castle Group (OTCMKTS:CAGU) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Penn National Gaming and The Castle Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penn National Gaming 0 1 6 0 2.86
The Castle Group 0 0 0 0 N/A

Penn National Gaming currently has a consensus price target of $31.86, suggesting a potential upside of 65.43%. Given Penn National Gaming’s higher probable upside, analysts plainly believe Penn National Gaming is more favorable than The Castle Group.

Institutional & Insider Ownership

95.2% of Penn National Gaming shares are held by institutional investors. 8.5% of Penn National Gaming shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Penn National Gaming and The Castle Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penn National Gaming $3.59 billion 0.63 $93.51 million $0.93 20.71
The Castle Group $26.25 million 0.14 $100,000.00 N/A N/A

Penn National Gaming has higher revenue and earnings than The Castle Group.

Profitability

This table compares Penn National Gaming and The Castle Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penn National Gaming 2.20% 13.24% 1.03%
The Castle Group N/A N/A N/A

Risk and Volatility

Penn National Gaming has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, The Castle Group has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.

Summary

Penn National Gaming beats The Castle Group on 10 of the 11 factors compared between the two stocks.

About Penn National Gaming

Penn National Gaming, Inc. owns and manages gaming and racing facilities, and operates video gaming terminals with a focus on slot machine entertainment. The company operates through four segments: Northeast, South, West, and Midwest. As of December 31, 2018, it owned, managed, or had ownership interests in 40 facilities in 18 jurisdictions. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

About The Castle Group

The Castle Group, Inc., through its subsidiaries, operates in the hotel and resort management industry in the state of Hawaii, New Zealand, and the Commonwealth of Saipan under the Castle Resorts and Hotels trade name. It manages luxury and mid-range resort condominiums and hotels on various islands in the state of Hawaii; and a property located in New Zealand. The company also provides reservations staffing and operation, advertising, sales and marketing, and accounting services to property owners. The Castle Group, Inc. was incorporated in 1981 and is headquartered in Honolulu, Hawaii.

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