Penn National Gaming (NASDAQ:PENN) and Park Hotels & Resorts (NYSE:PK) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Risk and Volatility
Penn National Gaming has a beta of 2.79, meaning that its share price is 179% more volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500.
Profitability
This table compares Penn National Gaming and Park Hotels & Resorts' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Penn National Gaming | -19.86% | -8.73% | -1.10% |
Park Hotels & Resorts | -71.01% | -19.63% | -9.89% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Penn National Gaming and Park Hotels & Resorts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Penn National Gaming | 2 | 4 | 12 | 0 | 2.56 |
Park Hotels & Resorts | 3 | 7 | 5 | 0 | 2.13 |
Penn National Gaming presently has a consensus target price of $95.6842, suggesting a potential downside of 4.26%. Park Hotels & Resorts has a consensus target price of $14.55, suggesting a potential downside of 31.72%. Given Penn National Gaming's stronger consensus rating and higher possible upside, research analysts clearly believe Penn National Gaming is more favorable than Park Hotels & Resorts.
Earnings & Valuation
This table compares Penn National Gaming and Park Hotels & Resorts' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Penn National Gaming | $5.30 billion | 2.95 | $43.90 million | $0.37 | 270.11 |
Park Hotels & Resorts | $2.84 billion | 1.77 | $306 million | $2.88 | 7.40 |
Park Hotels & Resorts has lower revenue, but higher earnings than Penn National Gaming. Park Hotels & Resorts is trading at a lower price-to-earnings ratio than Penn National Gaming, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
87.5% of Penn National Gaming shares are held by institutional investors. Comparatively, 78.8% of Park Hotels & Resorts shares are held by institutional investors. 1.8% of Penn National Gaming shares are held by company insiders. Comparatively, 0.6% of Park Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Penn National Gaming beats Park Hotels & Resorts on 11 of the 14 factors compared between the two stocks.