Caesars Entertainment (NASDAQ:CZR – Get Free Report) and Carnival (NYSE:CUK – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Insider and Institutional Ownership
91.8% of Caesars Entertainment shares are held by institutional investors. Comparatively, 23.8% of Carnival shares are held by institutional investors. 1.0% of Caesars Entertainment shares are held by company insiders. Comparatively, 0.1% of Carnival shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Caesars Entertainment and Carnival, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesars Entertainment | 1 | 7 | 9 | 0 | 2.47 |
| Carnival | 0 | 1 | 1 | 0 | 2.50 |
Risk and Volatility
Caesars Entertainment has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Carnival has a beta of 2.36, indicating that its stock price is 136% more volatile than the S&P 500.
Profitability
This table compares Caesars Entertainment and Carnival’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesars Entertainment | -4.19% | -7.88% | -0.95% |
| Carnival | 11.48% | 26.92% | 6.20% |
Earnings and Valuation
This table compares Caesars Entertainment and Carnival”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesars Entertainment | $11.49 billion | 0.48 | -$502.00 million | ($2.37) | -11.46 |
| Carnival | $26.62 billion | 0.19 | $2.76 billion | $2.25 | 12.21 |
Carnival has higher revenue and earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.
Summary
Carnival beats Caesars Entertainment on 9 of the 14 factors compared between the two stocks.
About Caesars Entertainment
Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.
About Carnival
Carnival Plc operates as a global cruise and vacation company. The firm offers holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. It operates through the North America and Australia (NAA), Europe and Asia (EA), Cruise Support, and Tour and Other segments. The NAA segment includes Carnival Cruise Line, Holland America Line, P and O Cruises (Australia), Princess and Seabourn. The EA segment includes AIDA, Costa, Cunard, and P and O Cruises (UK). The Cruise Support segment includes a portfolio of port destinations and other services, all of which are operated for the benefit of cruise brands. The Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. The company was founded on July 19, 2000 and is headquartered in Southampton, the United Kingdom.
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