Caesars Entertainment (NASDAQ:CZR – Get Free Report) and Royal Caribbean Cruises (NYSE:RCL – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Caesars Entertainment has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Caesars Entertainment and Royal Caribbean Cruises, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesars Entertainment | 1 | 7 | 9 | 0 | 2.47 |
| Royal Caribbean Cruises | 0 | 4 | 17 | 0 | 2.81 |
Profitability
This table compares Caesars Entertainment and Royal Caribbean Cruises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesars Entertainment | -4.37% | -7.97% | -1.00% |
| Royal Caribbean Cruises | 23.80% | 45.06% | 10.87% |
Insider and Institutional Ownership
91.8% of Caesars Entertainment shares are held by institutional investors. Comparatively, 87.5% of Royal Caribbean Cruises shares are held by institutional investors. 1.0% of Caesars Entertainment shares are held by company insiders. Comparatively, 7.0% of Royal Caribbean Cruises shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Caesars Entertainment and Royal Caribbean Cruises”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesars Entertainment | $11.49 billion | 0.49 | -$502.00 million | ($2.43) | -11.31 |
| Royal Caribbean Cruises | $17.94 billion | 4.01 | $4.27 billion | $15.61 | 17.03 |
Royal Caribbean Cruises has higher revenue and earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Royal Caribbean Cruises, indicating that it is currently the more affordable of the two stocks.
Summary
Royal Caribbean Cruises beats Caesars Entertainment on 13 of the 14 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 Royal Caribbean Cruises
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
Receive News & Ratings for Caesars Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Caesars Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
