Casey's General Stores (NASDAQ:CASY) and Camping World (NYSE:CWH) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Casey's General Stores and Camping World's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Casey's General Stores | 3.92% | 19.21% | 8.07% |
| Camping World | 1.51% | -270.25% | 7.72% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Casey's General Stores and Camping World, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Casey's General Stores | 1 | 4 | 6 | 0 | 2.45 |
| Camping World | 0 | 1 | 6 | 0 | 2.86 |
Casey's General Stores currently has a consensus price target of $210.6667, indicating a potential downside of 5.67%. Camping World has a consensus price target of $45.1429, indicating a potential upside of 8.31%. Given Camping World's stronger consensus rating and higher possible upside, analysts plainly believe Camping World is more favorable than Casey's General Stores.
Institutional and Insider Ownership
83.1% of Casey's General Stores shares are owned by institutional investors. Comparatively, 37.4% of Camping World shares are owned by institutional investors. 0.6% of Casey's General Stores shares are owned by company insiders. Comparatively, 49.8% of Camping World shares are owned 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.
Risk and Volatility
Casey's General Stores has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Camping World has a beta of 3.45, meaning that its share price is 245% more volatile than the S&P 500.
Dividends
Casey's General Stores pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. Camping World pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Casey's General Stores pays out 19.2% of its earnings in the form of a dividend. Camping World pays out -55.4% 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. Casey's General Stores has raised its dividend for 1 consecutive years and Camping World has raised its dividend for 1 consecutive years. Camping World is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Casey's General Stores and Camping World's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Casey's General Stores | $9.18 billion | 0.90 | $263.85 million | $7.10 | 31.45 |
| Camping World | $4.89 billion | 0.75 | $-60,590,000.00 | ($0.65) | -64.12 |
Casey's General Stores has higher revenue and earnings than Camping World. Camping World is trading at a lower price-to-earnings ratio than Casey's General Stores, indicating that it is currently the more affordable of the two stocks.
Summary
Casey's General Stores beats Camping World on 9 of the 15 factors compared between the two stocks.
