Golden Entertainment (NASDAQ: GDEN) and Eldorado Resorts (NASDAQ:ERI) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Insider & Institutional Ownership
27.5% of Golden Entertainment shares are held by institutional investors. Comparatively, 69.4% of Eldorado Resorts shares are held by institutional investors. 52.0% of Golden Entertainment shares are held by company insiders. Comparatively, 1.2% of Eldorado Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Golden Entertainment and Eldorado Resorts’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golden Entertainment||$426.75 million||1.23||$44.77 million||$0.80||29.30|
Golden Entertainment has higher revenue and earnings than Eldorado Resorts. Eldorado Resorts is trading at a lower price-to-earnings ratio than Golden Entertainment, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Golden Entertainment has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Eldorado Resorts has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Golden Entertainment and Eldorado Resorts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eldorado Resorts has a consensus price target of $25.00, suggesting a potential upside of 0.81%. Given Eldorado Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Eldorado Resorts is more favorable than Golden Entertainment.
This table compares Golden Entertainment and Eldorado Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Golden Entertainment beats Eldorado Resorts on 6 of the 11 factors compared between the two stocks.
Golden Entertainment Company Profile
Golden Entertainment, Inc. is a group of gaming companies. The Company focuses on distributed gaming, including tavern gaming, and casino and resort operations. It operates through two segments: Distributed Gaming and Casinos. Its Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. As of December 31, 2016, its distributed gaming operations consisted of approximately 10,400 gaming devices in approximately 960 locations. Its Casinos segment consists of the Rocky Gap Casino Resort in Flintstone, Maryland and three casinos in Pahrump, Nevada: Pahrump Nugget Hotel Casino, Gold Town Casino and Lakeside Casino & RV Park.
Eldorado Resorts Company Profile
Eldorado Resorts, Inc. is a gaming and hospitality company that owns and operates gaming facilities located in Ohio, Louisiana, Nevada, Pennsylvania and West Virginia. The Company’s segments are Nevada, Louisiana, Eastern and Corporate. As of May 1, 2017, the Company owned and operated approximately 503,000 square feet of casino space with approximately 20,000 slot machines and video lottery terminals (VLTs), over 550 table and poker games, 45 restaurants and 6,500 hotel rooms. As of December 31, 2016, the Company owned and operated various properties, including Eldorado Resort Casino Reno (Eldorado Reno), Silver Legacy Resort Casino (Silver Legacy), Circus Circus Reno (Circus Reno), Eldorado Resort Casino Shreveport (Eldorado Shreveport), Mountaineer Casino, Racetrack & Resort (Mountaineer), Presque Isle Downs & Casino (Presque Isle Downs), and Eldorado Gaming Scioto Downs (Scioto Downs).
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