Caesars Entertainment (NASDAQ:CZR – Get Free Report) and United Parks & Resorts (NYSE:PRKS – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Caesars Entertainment and United Parks & Resorts, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesars Entertainment | 2 | 5 | 12 | 1 | 2.60 |
| United Parks & Resorts | 2 | 7 | 4 | 0 | 2.15 |
Caesars Entertainment presently has a consensus target price of $34.61, suggesting a potential upside of 54.72%. United Parks & Resorts has a consensus target price of $50.82, suggesting a potential upside of 33.00%. Given Caesars Entertainment’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Caesars Entertainment is more favorable than United Parks & Resorts.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Caesars Entertainment | -2.12% | -5.76% | -0.75% |
| United Parks & Resorts | 10.83% | -44.47% | 6.88% |
Valuation & Earnings
This table compares Caesars Entertainment and United Parks & Resorts”s 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 | 0.41 | -$278.00 million | ($1.15) | -19.45 |
| United Parks & Resorts | $1.73 billion | 1.21 | $227.50 million | $3.27 | 11.68 |
United Parks & Resorts has lower revenue, but higher earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than United Parks & Resorts, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
91.8% of Caesars Entertainment shares are owned by institutional investors. 1.0% of Caesars Entertainment shares are owned by insiders. Comparatively, 1.2% of United Parks & Resorts shares are owned by 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.
Risk and Volatility
Caesars Entertainment has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.
Summary
Caesars Entertainment beats United Parks & Resorts on 8 of the 15 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 United Parks & Resorts
United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.
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