Head-To-Head Contrast: Six Flags Entertainment (NYSE:FUN) and Krispy Kreme (NASDAQ:DNUT)

Krispy Kreme (NASDAQ:DNUT) and Six Flags Entertainment (NYSE:FUN) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Earnings & Valuation

This table compares Krispy Kreme and Six Flags Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krispy Kreme	$1.52 billion	0.33	-$515.77 million	($0.56)	-5.13
Six Flags Entertainment	$3.10 billion	0.23	-$1.60 billion	($17.32)	-0.41

Krispy Kreme has higher earnings, but lower revenue than Six Flags Entertainment. Krispy Kreme is trading at a lower price-to-earnings ratio than Six Flags Entertainment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Krispy Kreme and Six Flags Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	3	0	2	0	1.80
Six Flags Entertainment	2	7	7	0	2.31

Krispy Kreme presently has a consensus price target of $4.33, suggesting a potential upside of 50.72%. Six Flags Entertainment has a consensus price target of $18.38, suggesting a potential upside of 159.82%. Given Six Flags Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Six Flags Entertainment is more favorable than Krispy Kreme.

Institutional & Insider Ownership

81.7% of Krispy Kreme shares are owned by institutional investors. Comparatively, 64.7% of Six Flags Entertainment shares are owned by institutional investors. 1.6% of Krispy Kreme shares are owned by insiders. Comparatively, 2.1% of Six Flags Entertainment shares are owned 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.

Risk & Volatility

Krispy Kreme has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Six Flags Entertainment has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Profitability

This table compares Krispy Kreme and Six Flags Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-6.16%	-1.17%	-0.31%
Six Flags Entertainment	-57.25%	7.43%	0.38%

Summary

Six Flags Entertainment beats Krispy Kreme on 8 of the 14 factors compared between the two stocks.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.