Archon (OTCMKTS:ARHN – Get Free Report) and Bally’s (NYSE:BALY – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Profitability
This table compares Archon and Bally’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Archon | N/A | N/A | N/A |
| Bally’s | -29.98% | -56.76% | -9.16% |
Earnings and Valuation
This table compares Archon and Bally’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Archon | N/A | N/A | N/A | N/A | N/A |
| Bally’s | $2.66 billion | 0.27 | -$701.10 million | ($8.15) | -1.78 |
Archon has higher earnings, but lower revenue than Bally’s.
Institutional & Insider Ownership
70.4% of Bally’s shares are owned by institutional investors. 80.0% of Archon shares are owned by insiders. Comparatively, 69.3% of Bally’s shares are owned by 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for Archon and Bally’s, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Archon | 0 | 0 | 0 | 0 | 0.00 |
| Bally’s | 2 | 3 | 0 | 0 | 1.60 |
Bally’s has a consensus price target of $12.75, indicating a potential downside of 12.06%. Given Bally’s’ stronger consensus rating and higher possible upside, analysts plainly believe Bally’s is more favorable than Archon.
Volatility & Risk
Archon has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Bally’s has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
Summary
Bally’s beats Archon on 5 of the 9 factors compared between the two stocks.
About Archon
Archon Corporation, through its subsidiary, Pioneer Hotel Inc., engages in the ownership, management, and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada that consists of a casino. The company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties that include commercial office space in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.
About Bally’s
Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.
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