Carnival (NYSE:CCL – Get Free Report) and Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Insider & Institutional Ownership
67.2% of Carnival shares are held by institutional investors. Comparatively, 91.4% of Dave & Buster’s Entertainment shares are held by institutional investors. 7.9% of Carnival shares are held by insiders. Comparatively, 1.7% of Dave & Buster’s Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Carnival and Dave & Buster’s Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carnival | $26.62 billion | 1.31 | $2.76 billion | $2.29 | 11.31 |
| Dave & Buster’s Entertainment | $2.10 billion | 0.13 | -$48.70 million | ($2.57) | -2.96 |
Carnival has higher revenue and earnings than Dave & Buster’s Entertainment. Dave & Buster’s Entertainment is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Carnival and Dave & Buster’s Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carnival | 11.37% | 24.83% | 6.32% |
| Dave & Buster’s Entertainment | -4.26% | -51.87% | -1.29% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Carnival and Dave & Buster’s Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carnival | 0 | 6 | 21 | 1 | 2.82 |
| Dave & Buster’s Entertainment | 2 | 5 | 2 | 0 | 2.00 |
Carnival presently has a consensus price target of $34.14, suggesting a potential upside of 31.82%. Dave & Buster’s Entertainment has a consensus price target of $17.33, suggesting a potential upside of 128.07%. Given Dave & Buster’s Entertainment’s higher possible upside, analysts plainly believe Dave & Buster’s Entertainment is more favorable than Carnival.
Volatility and Risk
Carnival has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.
Summary
Carnival beats Dave & Buster’s Entertainment on 13 of the 15 factors compared between the two stocks.
About Carnival
Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
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