Caesars Entertainment (NASDAQ:CZR – Get Free Report) and Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Analyst Recommendations
This is a breakdown of recent ratings for Caesars Entertainment and Dave & Buster’s Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesars Entertainment | 2 | 15 | 2 | 0 | 2.00 |
| Dave & Buster’s Entertainment | 1 | 6 | 2 | 0 | 2.11 |
Caesars Entertainment currently has a consensus price target of $30.71, indicating a potential upside of 3.59%. Dave & Buster’s Entertainment has a consensus price target of $17.33, indicating a potential upside of 155.28%. Given Dave & Buster’s Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Dave & Buster’s Entertainment is more favorable than Caesars Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Caesars Entertainment | -3.99% | -7.64% | -0.89% |
| Dave & Buster’s Entertainment | -4.26% | -51.87% | -1.29% |
Insider & Institutional Ownership
91.8% of Caesars Entertainment shares are owned by institutional investors. Comparatively, 91.4% of Dave & Buster’s Entertainment shares are owned by institutional investors. 1.2% of Caesars Entertainment shares are owned by company insiders. Comparatively, 1.7% of Dave & Buster’s Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Caesars Entertainment and Dave & Buster’s Entertainment”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 | $11.65 billion | 0.52 | -$502.00 million | ($2.28) | -13.00 |
| Dave & Buster’s Entertainment | $2.10 billion | 0.11 | -$48.70 million | ($2.57) | -2.64 |
Dave & Buster’s Entertainment has lower revenue, but higher earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Caesars Entertainment has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.
Summary
Caesars Entertainment beats Dave & Buster’s Entertainment on 7 of the 13 factors compared between the two stocks.
About Caesars Entertainment
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 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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