Six Flags Entertainment (NYSE:FUN – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Institutional and Insider Ownership
64.7% of Six Flags Entertainment shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 2.1% of Six Flags Entertainment shares are held by company insiders. Comparatively, 14.4% of Inspired Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Six Flags Entertainment and Inspired Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Six Flags Entertainment | 2 | 7 | 7 | 0 | 2.31 |
| Inspired Entertainment | 1 | 2 | 4 | 0 | 2.43 |
Six Flags Entertainment currently has a consensus target price of $16.92, indicating a potential upside of 84.89%. Inspired Entertainment has a consensus target price of $11.44, indicating a potential upside of 226.79%. Given Inspired Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Inspired Entertainment is more favorable than Six Flags Entertainment.
Profitability
This table compares Six Flags Entertainment and Inspired Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Six Flags Entertainment | -57.25% | 7.43% | 0.38% |
| Inspired Entertainment | -3.34% | -30.08% | 0.92% |
Risk & Volatility
Six Flags Entertainment has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Valuation & Earnings
This table compares Six Flags Entertainment and Inspired Entertainment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Six Flags Entertainment | $3.10 billion | 0.30 | -$1.60 billion | ($17.32) | -0.53 |
| Inspired Entertainment | $281.40 million | 0.33 | -$17.00 million | ($0.33) | -10.61 |
Inspired Entertainment has lower revenue, but higher earnings than Six Flags Entertainment. Inspired Entertainment 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.
Summary
Inspired Entertainment beats Six Flags Entertainment on 10 of the 14 factors compared between the two stocks.
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.
About Inspired Entertainment
Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
Receive News & Ratings for Six Flags Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Six Flags Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
