Financial Survey: Bally’s (NYSE:BALY) versus Yum! Brands (NYSE:YUM)

Bally’s (NYSE:BALY) and Yum! Brands (NYSE:YUM) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Earnings & Valuation

This table compares Bally’s and Yum! Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.66 billion	0.20	-$701.10 million	($6.80)	-1.56
Yum! Brands	$8.21 billion	4.63	$1.56 billion	$7.95	17.53

Yum! Brands has higher revenue and earnings than Bally’s. Bally’s is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Bally’s has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Profitability

This table compares Bally’s and Yum! Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-25.83%	-40.97%	-7.66%
Yum! Brands	25.42%	-24.57%	22.24%

Analyst Ratings

This is a summary of current recommendations for Bally’s and Yum! Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	2	3	0	0	1.60
Yum! Brands	1	6	14	0	2.62

Bally’s currently has a consensus target price of $11.75, suggesting a potential upside of 10.85%. Yum! Brands has a consensus target price of $174.67, suggesting a potential upside of 25.33%. Given Yum! Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Yum! Brands is more favorable than Bally’s.

Insider & Institutional Ownership

70.4% of Bally’s shares are owned by institutional investors. Comparatively, 82.4% of Yum! Brands shares are owned by institutional investors. 69.3% of Bally’s shares are owned by company insiders. Comparatively, 0.1% of Yum! Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Yum! Brands beats Bally’s on 12 of the 14 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

About Yum! Brands

Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.