Analyzing Century Casinos (CNTY) & Monarch Casino & Resort (NASDAQ:MCRI)

Century Casinos (NASDAQ: CNTY) and Monarch Casino & Resort (NASDAQ:MCRI) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Earnings and Valuation

This table compares Century Casinos and Monarch Casino & Resort’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Century Casinos $144.54 million 1.15 $24.26 million $0.35 19.34
Monarch Casino & Resort $224.35 million 2.70 $56.76 million $1.48 23.28

Monarch Casino & Resort has higher revenue and earnings than Century Casinos. Century Casinos is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Century Casinos and Monarch Casino & Resort’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Century Casinos 5.98% 6.07% 3.92%
Monarch Casino & Resort 11.77% 11.16% 8.92%

Analyst Recommendations

This is a summary of current recommendations and price targets for Century Casinos and Monarch Casino & Resort, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Century Casinos 0 1 1 0 2.50
Monarch Casino & Resort 0 2 2 0 2.50

Century Casinos currently has a consensus price target of $9.30, indicating a potential upside of 37.37%. Monarch Casino & Resort has a consensus price target of $48.75, indicating a potential upside of 41.51%. Given Monarch Casino & Resort’s higher possible upside, analysts clearly believe Monarch Casino & Resort is more favorable than Century Casinos.

Risk & Volatility

Century Casinos has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500. Comparatively, Monarch Casino & Resort has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Insider & Institutional Ownership

73.2% of Century Casinos shares are owned by institutional investors. Comparatively, 56.8% of Monarch Casino & Resort shares are owned by institutional investors. 14.5% of Century Casinos shares are owned by insiders. Comparatively, 27.6% of Monarch Casino & Resort shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Monarch Casino & Resort beats Century Casinos on 12 of the 13 factors compared between the two stocks.

About Century Casinos

Century Casinos, Inc. is an international casino entertainment company. The Company develops and operates gaming establishments, as well as related lodging, restaurant and entertainment facilities around the world. Its segments include Canada, the United States, Poland, and Corporate and Other. The Canada segment consists of Century Casino & Hotel-Edmonton; Century Casino Calgary; Century Downs Racetrack and Casino, and Century Bets! Inc. (Century Bets). The United States segment comprises Century Casino & Hotel-Central City, and Century Casino & Hotel-Cripple Creek. The Poland segment consists of Casinos Poland. The Corporate and Other segment comprises Cruise Ships and other. The Company owns casino operations in North America; holds interest in casinos throughout Poland; holds a racetrack and entertainment center (REC) in Canada and the pari-mutuel off-track betting network in southern Alberta; manages a casino in Aruba, and provides gaming services in Argentina.

About Monarch Casino & Resort

Monarch Casino & Resort, Inc. (Monarch), through its subsidiary, owns and operates the Atlantis Casino Resort Spa (the Atlantis), a hotel/casino facility in Reno, Nevada. The Company also owns and operates Monarch Casino Black Hawk. The Company’s segments include Atlantis and Monarch Casino Black Hawk. The Atlantis is located approximately three miles south of downtown in the area of Reno, Nevada. As of December 31, 2016, the Atlantis featured approximately 61,000 square feet of casino space; 824 guest rooms and suites; eight food outlets; two espresso and pastry bars; a 30,000 square foot health spa and salon with an enclosed year-round pool; two retail outlets offering clothing and traditional gift shop merchandise; an 8,000 square-foot family entertainment center, and approximately 52,000 square feet of banquet, convention and meeting room space.

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