Boyd Gaming (NYSE:BYD – Get Free Report) and Universal Entertainment (OTCMKTS:UETMF – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
76.8% of Boyd Gaming shares are owned by institutional investors. 22.0% of Boyd Gaming shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Boyd Gaming has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Universal Entertainment has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boyd Gaming | 0 | 10 | 6 | 0 | 2.38 |
| Universal Entertainment | 0 | 0 | 0 | 0 | 0.00 |
Boyd Gaming presently has a consensus price target of $89.54, indicating a potential upside of 5.33%. Given Boyd Gaming’s stronger consensus rating and higher possible upside, analysts clearly believe Boyd Gaming is more favorable than Universal Entertainment.
Profitability
This table compares Boyd Gaming and Universal Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boyd Gaming | 46.02% | 34.63% | 9.34% |
| Universal Entertainment | -5.30% | 14.42% | 8.49% |
Valuation and Earnings
This table compares Boyd Gaming and Universal Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boyd Gaming | $3.93 billion | 1.69 | $577.95 million | $22.88 | 3.72 |
| Universal Entertainment | $835.53 million | 0.61 | -$102.75 million | ($0.59) | -11.11 |
Boyd Gaming has higher revenue and earnings than Universal Entertainment. Universal Entertainment is trading at a lower price-to-earnings ratio than Boyd Gaming, indicating that it is currently the more affordable of the two stocks.
Summary
Boyd Gaming beats Universal Entertainment on 14 of the 14 factors compared between the two stocks.
About Boyd Gaming
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
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.
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