Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) and Churchill Downs (NASDAQ:CHDN – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.
Volatility & Risk
Lucky Strike Entertainment has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Valuation & Earnings
This table compares Lucky Strike Entertainment and Churchill Downs”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lucky Strike Entertainment | $1.25 billion | 0.55 | -$35.78 million | ($0.34) | -14.76 |
| Churchill Downs | $2.93 billion | 1.90 | $383.00 million | $5.83 | 13.72 |
Churchill Downs has higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Dividends
Lucky Strike Entertainment pays an annual dividend of $0.24 per share and has a dividend yield of 4.8%. Churchill Downs pays an annual dividend of $0.44 per share and has a dividend yield of 0.6%. Lucky Strike Entertainment pays out -70.6% of its earnings in the form of a dividend. Churchill Downs pays out 7.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Churchill Downs has increased its dividend for 14 consecutive years. Lucky Strike Entertainment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Lucky Strike Entertainment and Churchill Downs, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lucky Strike Entertainment | 3 | 6 | 4 | 0 | 2.08 |
| Churchill Downs | 0 | 1 | 10 | 0 | 2.91 |
Lucky Strike Entertainment currently has a consensus target price of $8.39, indicating a potential upside of 67.14%. Churchill Downs has a consensus target price of $134.89, indicating a potential upside of 68.70%. Given Churchill Downs’ stronger consensus rating and higher probable upside, analysts clearly believe Churchill Downs is more favorable than Lucky Strike Entertainment.
Profitability
This table compares Lucky Strike Entertainment and Churchill Downs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lucky Strike Entertainment | -2.87% | N/A | -1.05% |
| Churchill Downs | 13.82% | 42.16% | 6.31% |
Insider and Institutional Ownership
68.1% of Lucky Strike Entertainment shares are held by institutional investors. Comparatively, 82.6% of Churchill Downs shares are held by institutional investors. 84.2% of Lucky Strike Entertainment shares are held by company insiders. Comparatively, 5.9% of Churchill Downs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Churchill Downs beats Lucky Strike Entertainment on 14 of the 17 factors compared between the two stocks.
About Lucky Strike Entertainment
Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
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