Six Flags Entertainment (NYSE:SIX) and International Game Technology (NYSE:IGT) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Profitability
This table compares Six Flags Entertainment and International Game Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Six Flags Entertainment | -68.52% | N/A | -11.82% |
International Game Technology | -21.60% | 0.59% | 0.09% |
Earnings & Valuation
This table compares Six Flags Entertainment and International Game Technology's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Six Flags Entertainment | $1.49 billion | 2.67 | $179.07 million | $2.24 | 20.81 |
International Game Technology | $4.79 billion | 0.73 | $-19,020,000.00 | $1.08 | 15.80 |
Six Flags Entertainment has higher earnings, but lower revenue than International Game Technology. International Game Technology is trading at a lower price-to-earnings ratio than Six Flags Entertainment, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Six Flags Entertainment has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500. Comparatively, International Game Technology has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500.
Institutional & Insider Ownership
80.9% of Six Flags Entertainment shares are owned by institutional investors. 1.0% of Six Flags Entertainment shares are owned by insiders. Comparatively, 1.2% of International Game Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Six Flags Entertainment and International Game Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Six Flags Entertainment | 0 | 6 | 7 | 0 | 2.54 |
International Game Technology | 0 | 4 | 6 | 0 | 2.60 |
Six Flags Entertainment currently has a consensus price target of $34.8462, suggesting a potential downside of 25.25%. International Game Technology has a consensus price target of $18.2750, suggesting a potential upside of 7.12%. Given International Game Technology's stronger consensus rating and higher possible upside, analysts plainly believe International Game Technology is more favorable than Six Flags Entertainment.
Summary
International Game Technology beats Six Flags Entertainment on 8 of the 14 factors compared between the two stocks.