Monarch Casino & Resort (NASDAQ:MCRI) and Advanced Drainage Systems (NYSE:WMS) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Risk & Volatility
Monarch Casino & Resort has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Advanced Drainage Systems has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
Earnings and Valuation
This table compares Monarch Casino & Resort and Advanced Drainage Systems' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Monarch Casino & Resort | $249.17 million | 2.33 | $31.82 million | $1.94 | 16.48 |
| Advanced Drainage Systems | $1.67 billion | 2.02 | $-193,170,000.00 | ($3.21) | -15.12 |
Monarch Casino & Resort has higher earnings, but lower revenue than Advanced Drainage Systems. Advanced Drainage Systems is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
61.9% of Monarch Casino & Resort shares are owned by institutional investors. Comparatively, 66.7% of Advanced Drainage Systems shares are owned by institutional investors. 26.8% of Monarch Casino & Resort shares are owned by company insiders. Comparatively, 20.7% of Advanced Drainage Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Monarch Casino & Resort and Advanced Drainage Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Monarch Casino & Resort | 11.11% | 9.39% | 5.46% |
| Advanced Drainage Systems | -11.62% | 13.61% | 2.90% |
Analyst Recommendations
This is a summary of recent recommendations for Monarch Casino & Resort and Advanced Drainage Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Monarch Casino & Resort | 0 | 0 | 4 | 0 | 3.00 |
| Advanced Drainage Systems | 0 | 2 | 4 | 0 | 2.67 |
Monarch Casino & Resort currently has a consensus price target of $47.00, indicating a potential upside of 46.97%. Advanced Drainage Systems has a consensus price target of $49.00, indicating a potential upside of 0.99%. Given Monarch Casino & Resort's stronger consensus rating and higher probable upside, equities analysts clearly believe Monarch Casino & Resort is more favorable than Advanced Drainage Systems.
Summary
Monarch Casino & Resort beats Advanced Drainage Systems on 10 of the 13 factors compared between the two stocks.
