Golden Entertainment (GDEN) versus Six Flags (SIX) Head-To-Head Contrast

Golden Entertainment (NASDAQ: GDEN) and Six Flags (NYSE:SIX) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

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Golden Entertainment has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Six Flags has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Dividends

Six Flags pays an annual dividend of $3.12 per share and has a dividend yield of 5.0%. Golden Entertainment does not pay a dividend. Six Flags pays out 146.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Six Flags has raised its dividend for 8 consecutive years.

Profitability

This table compares Golden Entertainment and Six Flags’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golden Entertainment 0.43% 1.86% 0.70%
Six Flags 20.15% -41.55% 7.58%

Institutional & Insider Ownership

39.1% of Golden Entertainment shares are held by institutional investors. Comparatively, 97.4% of Six Flags shares are held by institutional investors. 52.0% of Golden Entertainment shares are held by company insiders. Comparatively, 6.9% of Six Flags shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Golden Entertainment and Six Flags, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golden Entertainment 0 1 3 0 2.75
Six Flags 1 1 9 0 2.73

Golden Entertainment currently has a consensus price target of $35.00, suggesting a potential upside of 42.39%. Six Flags has a consensus price target of $68.11, suggesting a potential upside of 9.57%. Given Golden Entertainment’s stronger consensus rating and higher probable upside, equities analysts plainly believe Golden Entertainment is more favorable than Six Flags.

Earnings and Valuation

This table compares Golden Entertainment and Six Flags’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golden Entertainment $509.81 million 1.32 $2.17 million $0.34 72.29
Six Flags $1.36 billion 3.87 $273.81 million $2.13 29.18

Six Flags has higher revenue and earnings than Golden Entertainment. Six Flags is trading at a lower price-to-earnings ratio than Golden Entertainment, indicating that it is currently the more affordable of the two stocks.

Summary

Six Flags beats Golden Entertainment on 11 of the 17 factors compared between the two stocks.

About Golden Entertainment

Golden Entertainment, Inc. is a group of gaming companies. The Company focuses on distributed gaming, including tavern gaming, and casino and resort operations. It operates through two segments: Distributed Gaming and Casinos. Its Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. As of October 23, 2017, its distributed gaming operations consisted of approximately 16,000 gaming devices in approximately 960 locations. Its Casinos segment consists of the Rocky Gap Casino Resort in Flintstone, Maryland and three casinos in Pahrump, Nevada: Pahrump Nugget Hotel Casino, Gold Town Casino and Lakeside Casino & RV Park.

About Six Flags

Six Flags Entertainment Corporation owns and operates regional theme and water parks under the Six Flags brand name. The company's parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. It owns and operates 20 parks, including 17 parks in the United States; 2 parks in Mexico; and 1 park in Montreal, Canada. The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1961 and is based in Grand Prairie, Texas.

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