Full House Resorts (NASDAQ:FLL) and SJM (OTCMKTS:SJMHF) Critical Analysis

SJM (OTCMKTS:SJMHF) and Full House Resorts (NASDAQ:FLL) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Volatility & Risk

SJM has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Institutional and Insider Ownership

37.7% of Full House Resorts shares are held by institutional investors. 9.4% of Full House Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SJM and Full House Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SJM	N/A	N/A	N/A
Full House Resorts	-13.38%	-150.12%	-6.11%

Earnings and Valuation

This table compares SJM and Full House Resorts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SJM	$3.69 billion	0.60	$410,000.00	N/A	N/A
Full House Resorts	$292.07 million	0.28	-$40.67 million	($1.12)	-2.02

SJM has higher revenue and earnings than Full House Resorts.

Analyst Recommendations

This is a summary of recent ratings for SJM and Full House Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SJM	0	2	0	0	2.00
Full House Resorts	1	1	2	0	2.25

Full House Resorts has a consensus target price of $4.33, indicating a potential upside of 91.74%. Given Full House Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Full House Resorts is more favorable than SJM.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

About Full House Resorts

Full House Resorts, Inc. owns, leases, operates, develops, manages, and invests in casinos, and related hospitality and entertainment facilities in the United States. It operates through Midwest & South, West, and Contracted Sports Wagering segments. The company's properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Rising Star Casino Resort in Rising Sun, Indiana; Bronco Billy's Casino and Chamonix Casino Hotel in Cripple Creek, Colorado; Stockman's Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. It also offers online sports wagering services. The company was incorporated in 1987 and is headquartered in Las Vegas, Nevada.