Caesars Entertainment Corporation (NASDAQ: CZR) and Eldorado Resorts (NASDAQ:ERI) 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 institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares Caesars Entertainment Corporation and Eldorado Resorts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Caesars Entertainment Corporation $3.90 billion 0.46 $795.00 million ($21.45) -0.57
Eldorado Resorts N/A N/A N/A ($0.45) -52.00

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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Caesars Entertainment Corporation and Eldorado Resorts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Entertainment Corporation 0 0 5 0 3.00
Eldorado Resorts 0 0 3 0 3.00

Caesars Entertainment Corporation currently has a consensus price target of $14.90, indicating a potential upside of 22.63%. Eldorado Resorts has a consensus price target of $22.33, indicating a potential downside of 4.56%. Given Caesars Entertainment Corporation’s higher possible upside, analysts clearly believe Caesars Entertainment Corporation is more favorable than Eldorado Resorts.

Profitability

This table compares Caesars Entertainment Corporation and Eldorado Resorts’ 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%
Eldorado Resorts -3.38% -11.56% -2.46%

Institutional and Insider Ownership

67.5% of Caesars Entertainment Corporation shares are held by institutional investors. Comparatively, 65.2% of Eldorado Resorts shares are held by institutional investors. 4.6% of Caesars Entertainment Corporation shares are held by company insiders. Comparatively, 1.2% of Eldorado Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Caesars Entertainment Corporation has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Eldorado Resorts has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Summary

Caesars Entertainment Corporation beats Eldorado Resorts on 6 of the 10 factors compared between the two stocks.

Caesars Entertainment Corporation Company Profile

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.

Eldorado Resorts Company Profile

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).

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