Caesars Entertainment (NASDAQ:CZR – Get Free Report) and Global Business Travel Group (NYSE:GBTG – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Volatility and Risk
Caesars Entertainment has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Global Business Travel Group has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Institutional & Insider Ownership
91.8% of Caesars Entertainment shares are owned by institutional investors. Comparatively, 82.5% of Global Business Travel Group shares are owned by institutional investors. 1.2% of Caesars Entertainment shares are owned by insiders. Comparatively, 5.4% of Global Business Travel Group 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.
Valuation & Earnings
This table compares Caesars Entertainment and Global Business Travel Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesars Entertainment | $11.49 billion | 0.52 | -$502.00 million | ($2.28) | -12.76 |
| Global Business Travel Group | $3.18 billion | 1.56 | $109.00 million | $0.17 | 55.88 |
Global Business Travel Group has lower revenue, but higher earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Global Business Travel Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Caesars Entertainment and Global Business Travel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesars Entertainment | -3.99% | -7.64% | -0.89% |
| Global Business Travel Group | 2.77% | 2.47% | 0.80% |
Analyst Recommendations
This is a summary of current ratings and price targets for Caesars Entertainment and Global Business Travel Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesars Entertainment | 1 | 16 | 2 | 0 | 2.05 |
| Global Business Travel Group | 0 | 6 | 2 | 0 | 2.25 |
Caesars Entertainment currently has a consensus price target of $30.71, suggesting a potential upside of 5.58%. Global Business Travel Group has a consensus price target of $8.90, suggesting a potential downside of 6.32%. Given Caesars Entertainment’s higher probable upside, equities analysts clearly believe Caesars Entertainment is more favorable than Global Business Travel Group.
Summary
Global Business Travel Group beats Caesars Entertainment on 9 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 Global Business Travel Group
Global Business Travel Group, Inc. provides business-to-business (B2B) travel platform in the United States and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers, such as airlines, hotels, ground transportation, and aggregators; and third-party travel agencies. It also provides consulting, meetings and events planning, and outsourced services. Global Business Travel Group, Inc. is based in New York, New York.
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