Churchill Downs (NASDAQ:CHDN) versus Universal Entertainment (OTCMKTS:UETMF) Head to Head Survey

Churchill Downs (NASDAQ:CHDN) and Universal Entertainment (OTCMKTS:UETMF) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Churchill Downs and Universal Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	1	9	1	3.00
Universal Entertainment	0	0	0	0	0.00

Churchill Downs presently has a consensus target price of $133.30, indicating a potential upside of 18.50%. Given Churchill Downs’ stronger consensus rating and higher probable upside, equities analysts plainly believe Churchill Downs is more favorable than Universal Entertainment.

Institutional and Insider Ownership

82.6% of Churchill Downs shares are held by institutional investors. 5.3% of Churchill Downs shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Churchill Downs has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Universal Entertainment has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares Churchill Downs and Universal Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.73 billion	2.87	$426.80 million	$5.50	20.45
Universal Entertainment	$835.53 million	0.61	-$102.75 million	($2.25)	-2.91

Churchill Downs has higher revenue and earnings than Universal Entertainment. Universal Entertainment is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Churchill Downs and Universal Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	13.99%	42.54%	6.11%
Universal Entertainment	-20.60%	9.72%	5.72%

Summary

Churchill Downs beats Universal Entertainment on 15 of the 15 factors compared between the two stocks.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

About Universal Entertainment

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.