Churchill Downs (NASDAQ:CHDN) and International Game Technology (NYSE:IGT) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Profitability
This table compares Churchill Downs and International Game Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Churchill Downs | -8.99% | 11.09% | 1.49% |
International Game Technology | -21.60% | 0.59% | 0.09% |
Risk and Volatility
Churchill Downs has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, International Game Technology has a beta of 2.34, indicating that its stock price is 134% more volatile than the S&P 500.
Insider and Institutional Ownership
73.0% of Churchill Downs shares are held by institutional investors. 4.3% of Churchill Downs shares are held by insiders. Comparatively, 1.2% of International Game Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Churchill Downs and International Game Technology's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Churchill Downs | $1.33 billion | 6.39 | $137.50 million | $4.43 | 49.81 |
International Game Technology | $4.79 billion | 0.73 | $-19,020,000.00 | $1.08 | 15.74 |
Churchill Downs has higher earnings, but lower revenue than International Game Technology. International Game Technology is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and target prices for Churchill Downs and International Game Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Churchill Downs | 0 | 1 | 4 | 0 | 2.80 |
International Game Technology | 0 | 4 | 6 | 0 | 2.60 |
Churchill Downs presently has a consensus price target of $200.80, indicating a potential downside of 9.00%. International Game Technology has a consensus price target of $18.2750, indicating a potential upside of 7.50%. Given International Game Technology's higher probable upside, analysts clearly believe International Game Technology is more favorable than Churchill Downs.
Summary
Churchill Downs beats International Game Technology on 9 of the 14 factors compared between the two stocks.