Marcus (NYSE:MCS) & Caesars Entertainment (NASDAQ:CZR) Head-To-Head Review

Caesars Entertainment (NASDAQ:CZRGet Free Report) and Marcus (NYSE:MCSGet 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 risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Volatility and Risk

Caesars Entertainment has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, Marcus has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Caesars Entertainment and Marcus, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Entertainment 2 5 12 1 2.60
Marcus 1 1 3 1 2.67

Caesars Entertainment currently has a consensus target price of $34.61, indicating a potential upside of 67.20%. Marcus has a consensus target price of $23.50, indicating a potential upside of 55.83%. Given Caesars Entertainment’s higher possible upside, analysts plainly believe Caesars Entertainment is more favorable than Marcus.

Valuation and Earnings

This table compares Caesars Entertainment and Marcus”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Caesars Entertainment $11.25 billion 0.38 -$278.00 million ($1.15) -18.00
Marcus $735.56 million 0.63 -$7.79 million $0.24 62.84

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

Institutional & Insider Ownership

91.8% of Caesars Entertainment shares are owned by institutional investors. Comparatively, 81.6% of Marcus shares are owned by institutional investors. 1.0% of Caesars Entertainment shares are owned by company insiders. Comparatively, 5.0% of Marcus 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.

Profitability

This table compares Caesars Entertainment and Marcus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caesars Entertainment -2.12% -5.76% -0.75%
Marcus 1.02% 1.71% 0.76%

Summary

Marcus beats Caesars Entertainment on 9 of the 14 factors compared between the two stocks.

About Caesars Entertainment

(Get Free Report)

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

About Marcus

(Get Free Report)

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

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