Life Time Group (NYSE:LTH – Get Free Report) and Caesars Entertainment (NASDAQ:CZR – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Profitability
This table compares Life Time Group and Caesars Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Life Time Group | 9.91% | 9.75% | 3.65% |
| Caesars Entertainment | -2.12% | -5.76% | -0.75% |
Volatility and Risk
Life Time Group has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Life Time Group | $2.62 billion | 2.17 | $156.24 million | $1.29 | 19.96 |
| Caesars Entertainment | $11.25 billion | 0.45 | -$278.00 million | ($1.15) | -21.33 |
Life Time Group has higher earnings, but lower revenue than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Life Time Group and Caesars Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Life Time Group | 0 | 5 | 10 | 1 | 2.75 |
| Caesars Entertainment | 1 | 6 | 12 | 1 | 2.65 |
Life Time Group currently has a consensus target price of $37.00, indicating a potential upside of 43.72%. Caesars Entertainment has a consensus target price of $35.39, indicating a potential upside of 44.27%. Given Caesars Entertainment’s higher probable upside, analysts clearly believe Caesars Entertainment is more favorable than Life Time Group.
Insider & Institutional Ownership
79.4% of Life Time Group shares are owned by institutional investors. Comparatively, 91.8% of Caesars Entertainment shares are owned by institutional investors. 8.7% of Life Time Group shares are owned by company insiders. Comparatively, 1.0% of Caesars Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Life Time Group beats Caesars Entertainment on 9 of the 14 factors compared between the two stocks.
About Life Time Group
Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.
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.
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