Century Casinos (NASDAQ:CNTY – Get Free Report) and Churchill Downs (NASDAQ:CHDN – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Volatility and Risk
Century Casinos has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Insider & Institutional Ownership
66.4% of Century Casinos shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 13.0% of Century Casinos shares are owned by insiders. Comparatively, 5.3% of Churchill Downs shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Century Casinos | 1 | 0 | 5 | 0 | 2.67 |
| Churchill Downs | 0 | 1 | 10 | 0 | 2.91 |
Century Casinos currently has a consensus price target of $5.00, indicating a potential upside of 120.26%. Churchill Downs has a consensus price target of $137.50, indicating a potential upside of 42.32%. Given Century Casinos’ higher probable upside, research analysts clearly believe Century Casinos is more favorable than Churchill Downs.
Profitability
This table compares Century Casinos and Churchill Downs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Century Casinos | -18.43% | -72.39% | -5.03% |
| Churchill Downs | 15.22% | 41.46% | 6.10% |
Valuation and Earnings
This table compares Century Casinos and Churchill Downs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Century Casinos | $574.73 million | 0.12 | -$128.17 million | ($3.44) | -0.66 |
| Churchill Downs | $2.73 billion | 2.48 | $426.80 million | $5.82 | 16.60 |
Churchill Downs has higher revenue and earnings than Century Casinos. Century Casinos is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Summary
Churchill Downs beats Century Casinos on 11 of the 14 factors compared between the two stocks.
About Century Casinos
Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. It develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. The company was founded in 1992 and is based in Colorado Springs, Colorado.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
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