PENN Entertainment (NASDAQ:PENN) vs. Viking (NYSE:VIK) Financial Analysis

PENN Entertainment (NASDAQ:PENN) and Viking (NYSE:VIK) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

91.7% of PENN Entertainment shares are held by institutional investors. Comparatively, 98.8% of Viking shares are held by institutional investors. 3.2% of PENN Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

PENN Entertainment has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Viking has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Valuation and Earnings

This table compares PENN Entertainment and Viking”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PENN Entertainment	$6.96 billion	0.29	-$843.10 million	($6.36)	-2.35
Viking	$6.50 billion	5.71	$1.15 billion	$3.01	27.67

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

Profitability

This table compares PENN Entertainment and Viking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PENN Entertainment	-12.66%	2.93%	0.39%
Viking	19.33%	117.98%	10.80%

Analyst Ratings

This is a summary of recent ratings for PENN Entertainment and Viking, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PENN Entertainment	1	5	14	1	2.71
Viking	1	2	16	1	2.85

PENN Entertainment presently has a consensus price target of $24.00, indicating a potential upside of 60.64%. Viking has a consensus price target of $106.83, indicating a potential upside of 28.26%. Given PENN Entertainment’s higher probable upside, analysts plainly believe PENN Entertainment is more favorable than Viking.

Summary

Viking beats PENN Entertainment on 10 of the 14 factors compared between the two stocks.

About PENN Entertainment

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.