Analyzing SeaWorld Entertainment (SEAS) & The Competition

SeaWorld Entertainment (NYSE: SEAS) is one of 24 publicly-traded companies in the “Miscellaneous amusement & recreation services” industry, but how does it compare to its competitors? We will compare SeaWorld Entertainment to similar businesses based on the strength of its analyst recommendations, dividends, risk, institutional ownership, earnings, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings for SeaWorld Entertainment and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaWorld Entertainment 0 3 5 0 2.63
SeaWorld Entertainment Competitors 145 830 1573 42 2.58

SeaWorld Entertainment currently has a consensus price target of $47.64, indicating a potential downside of 13.51%. As a group, “Miscellaneous amusement & recreation services” companies have a potential upside of 8.89%. Given SeaWorld Entertainment’s competitors higher possible upside, analysts clearly believe SeaWorld Entertainment has less favorable growth aspects than its competitors.

Profitability

This table compares SeaWorld Entertainment and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SeaWorld Entertainment -66.80% -352.53% -11.46%
SeaWorld Entertainment Competitors -260.74% -1,130.46% -47.54%

Earnings and Valuation

This table compares SeaWorld Entertainment and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
SeaWorld Entertainment $431.78 million -$312.32 million -13.98
SeaWorld Entertainment Competitors $3.79 billion -$344.29 million -80.69

SeaWorld Entertainment’s competitors have higher revenue, but lower earnings than SeaWorld Entertainment. SeaWorld Entertainment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

45.5% of shares of all “Miscellaneous amusement & recreation services” companies are held by institutional investors. 1.0% of SeaWorld Entertainment shares are held by insiders. Comparatively, 22.2% of shares of all “Miscellaneous amusement & recreation services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

SeaWorld Entertainment has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500. Comparatively, SeaWorld Entertainment’s competitors have a beta of 1.77, suggesting that their average share price is 77% more volatile than the S&P 500.

Summary

SeaWorld Entertainment beats its competitors on 8 of the 13 factors compared.

SeaWorld Entertainment Company Profile

SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. The company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, as well as Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. It also operates water park attractions in Orlando, Florida; San Antonio, Texas; Chula Vista, California; Tampa, Florida; and Williamsburg, Virginia. In addition, the company operates a reservations-only theme park in Orlando, Florida and a seasonal park in Langhorne, Pennsylvania. It operates a portfolio of twelve theme parks under the SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Water Country USA, Adventure Island, and Sesame Place brands. The company was formerly known as SW Holdco, Inc. and changed its name to SeaWorld Entertainment, Inc. in December 2012. SeaWorld Entertainment, Inc. was founded in 1959 and is headquartered in Orlando, Florida.

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