Churchill Downs (NASDAQ:CHDN) versus Galaxy Gaming (OTCMKTS:GLXZ) Head-To-Head Review

Galaxy Gaming (OTCMKTS:GLXZ) and Churchill Downs (NASDAQ:CHDN) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

0.4% of Galaxy Gaming shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 21.9% of Galaxy Gaming shares are owned by company insiders. Comparatively, 5.3% of Churchill Downs shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Galaxy Gaming has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares Galaxy Gaming and Churchill Downs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galaxy Gaming	-3.02%	N/A	-2.99%
Churchill Downs	13.09%	43.26%	6.06%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Gaming	$31.74 million	1.42	-$2.63 million	($0.03)	-59.06
Churchill Downs	$2.93 billion	2.05	$383.00 million	$5.26	16.39

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

Analyst Recommendations

This is a breakdown of current ratings for Galaxy Gaming and Churchill Downs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Gaming	0	0	0	0	0.00
Churchill Downs	0	1	11	0	2.92

Churchill Downs has a consensus target price of $135.00, indicating a potential upside of 56.61%. Given Churchill Downs’ stronger consensus rating and higher probable upside, analysts plainly believe Churchill Downs is more favorable than Galaxy Gaming.

Summary

Churchill Downs beats Galaxy Gaming on 13 of the 14 factors compared between the two stocks.

About Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.

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.