Eldorado Resorts (NASDAQ: ERI) and Caesars Entertainment Corporation (NASDAQ:CZR) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Earnings & Valuation
This table compares Eldorado Resorts and Caesars Entertainment Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Caesars Entertainment Corporation||$3.90 billion||0.43||$795.00 million||($21.45)||-0.53|
Caesars Entertainment Corporation has higher revenue and earnings than Eldorado Resorts. Eldorado Resorts is trading at a lower price-to-earnings ratio than Caesars Entertainment Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Eldorado Resorts and Caesars Entertainment Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Caesars Entertainment Corporation||-81.33%||N/A||-33.98%|
Risk and Volatility
Eldorado Resorts has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Caesars Entertainment Corporation has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.
Institutional & Insider Ownership
65.2% of Eldorado Resorts shares are owned by institutional investors. Comparatively, 68.4% of Caesars Entertainment Corporation shares are owned by institutional investors. 1.2% of Eldorado Resorts shares are owned by insiders. Comparatively, 4.6% of Caesars Entertainment Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Eldorado Resorts and Caesars Entertainment Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Caesars Entertainment Corporation||0||0||5||0||3.00|
Eldorado Resorts currently has a consensus price target of $22.33, indicating a potential upside of 0.15%. Caesars Entertainment Corporation has a consensus price target of $14.90, indicating a potential upside of 31.86%. Given Caesars Entertainment Corporation’s higher probable upside, analysts plainly believe Caesars Entertainment Corporation is more favorable than Eldorado Resorts.
Caesars Entertainment Corporation beats Eldorado Resorts on 6 of the 10 factors compared between the two stocks.
About Eldorado Resorts
Eldorado Resorts, Inc. is a gaming and hospitality company that owns and operates gaming facilities located in Ohio, Louisiana, Nevada, Pennsylvania and West Virginia. The Company’s segments are Nevada, Louisiana, Eastern and Corporate. As of May 1, 2017, the Company owned and operated approximately 503,000 square feet of casino space with approximately 20,000 slot machines and video lottery terminals (VLTs), over 550 table and poker games, 45 restaurants and 6,500 hotel rooms. As of December 31, 2016, the Company owned and operated various properties, including Eldorado Resort Casino Reno (Eldorado Reno), Silver Legacy Resort Casino (Silver Legacy), Circus Circus Reno (Circus Reno), Eldorado Resort Casino Shreveport (Eldorado Shreveport), Mountaineer Casino, Racetrack & Resort (Mountaineer), Presque Isle Downs & Casino (Presque Isle Downs), and Eldorado Gaming Scioto Downs (Scioto Downs).
About Caesars Entertainment Corporation
Caesars Entertainment Corporation is a holding company. The Company provides casino-entertainment and hospitality services. The Company’s segments include Caesars Entertainment Resort Properties, LLC (CERP), Caesars Growth Partners, LLC (CGP) and Other. The Company’s facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. As of July 14, 2017, the Company through its subsidiaries, operates 47 casinos in 13 states and in five countries. As of December 31, 2017, the Company has over one million square feet of gaming space and approximately 24,000 hotel rooms. As of December 31, 2016, CERP owned six casinos in the United States and The LINQ promenade along with leasing Octavius Tower at Caesars Palace Las Vegas (Octavius Tower) to Caesars Entertainment Operating Company (CEOC) and gaming space at The LINQ promenade to CGP. As of December 31, 2016, CGP owned six casinos in the United States.
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