Critical Survey: Full House Resorts (NASDAQ:FLL) & Carnival (NYSE:CCL)

Carnival (NYSE:CCL) and Full House Resorts (NASDAQ:FLL) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Valuation & Earnings

This table compares Carnival and Full House Resorts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carnival	$27.59 billion	1.28	$2.76 billion	$2.29	11.51
Full House Resorts	$302.38 million	0.15	-$40.20 million	($1.02)	-1.19

Carnival has higher revenue and earnings than Full House Resorts. Full House Resorts is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Carnival and Full House Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carnival	11.37%	24.83%	6.32%
Full House Resorts	-12.06%	-473.31%	-5.78%

Institutional & Insider Ownership

67.2% of Carnival shares are owned by institutional investors. Comparatively, 37.7% of Full House Resorts shares are owned by institutional investors. 7.9% of Carnival shares are owned by company insiders. Comparatively, 10.6% of Full House Resorts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Carnival has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Carnival and Full House Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carnival	0	6	21	1	2.82
Full House Resorts	1	0	3	0	2.50

Carnival currently has a consensus price target of $34.14, indicating a potential upside of 29.56%. Full House Resorts has a consensus price target of $3.50, indicating a potential upside of 189.26%. Given Full House Resorts’ higher probable upside, analysts plainly believe Full House Resorts is more favorable than Carnival.

Summary

Carnival beats Full House Resorts on 13 of the 15 factors compared between the two stocks.

About Carnival

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.

About Full House Resorts

Full House Resorts, Inc. owns, leases, operates, develops, manages, and invests in casinos, and related hospitality and entertainment facilities in the United States. It operates through Midwest & South, West, and Contracted Sports Wagering segments. The company's properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Rising Star Casino Resort in Rising Sun, Indiana; Bronco Billy's Casino and Chamonix Casino Hotel in Cripple Creek, Colorado; Stockman's Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. It also offers online sports wagering services. The company was incorporated in 1987 and is headquartered in Las Vegas, Nevada.