Churchill Downs (NASDAQ: CHDN) and International Speedway (NASDAQ:ISCA) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
This is a summary of current ratings and target prices for Churchill Downs and International Speedway, as provided by MarketBeat.com.
||Strong Buy Ratings
Churchill Downs presently has a consensus target price of $244.67, suggesting a potential upside of 3.69%. International Speedway has a consensus target price of $40.00, suggesting a potential downside of 0.37%. Given Churchill Downs’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Churchill Downs is more favorable than International Speedway.
Earnings and Valuation
This table compares Churchill Downs and International Speedway’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
Churchill Downs has higher revenue and earnings than International Speedway. International Speedway is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
83.7% of Churchill Downs shares are owned by institutional investors. Comparatively, 52.0% of International Speedway shares are owned by institutional investors. 13.8% of Churchill Downs shares are owned by insiders. Comparatively, 43.1% of International Speedway shares are owned by 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 & Volatility
Churchill Downs has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, International Speedway has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Churchill Downs pays an annual dividend of $1.52 per share and has a dividend yield of 0.6%. International Speedway pays an annual dividend of $0.43 per share and has a dividend yield of 1.1%. Churchill Downs pays out 25.9% of its earnings in the form of a dividend. International Speedway pays out 26.7% 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. International Speedway has raised its dividend for 12 consecutive years. International Speedway is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Churchill Downs and International Speedway’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Churchill Downs beats International Speedway on 12 of the 17 factors compared between the two stocks.
About Churchill Downs
Churchill Downs Incorporated is a racing, gaming and online entertainment company. The Company is engaged in brick-and-mortar casino gaming with approximately 9,030 gaming positions in seven states, and is a legal mobile and online platform for betting on horseracing in the United States. It operates through five segments: Racing, Casinos, TwinSpires, Other Investments and Corporate. Racing includes four racetracks: Churchill Downs Racetrack, Arlington International Race Course, Fair Grounds Race Course and Calder Race Course. Casinos is a provider of brick-and-mortar real-money casino gaming. TwinSpires operates mobile and online wagering business, which is a platform for betting on horseracing. Other Investments includes United Tote and Capital View Casino & Resort Joint Venture (Capital View).
About International Speedway
International Speedway Corporation, together with its subsidiaries, promotes motorsports themed entertainment activities in the United States. Its motorsports themed event operations consist principally of racing events at its motorsports entertainment facilities, which promote approximately 100 stock car, open wheel, sports car, truck, motorcycle, and other racing events. The company is also involved in food and beverage concession operations; the provision of catering services in suites and chalets; and the creation of motorsports-related programming content carried on radio stations, as well as Sirius XM Radio, a national satellite radio service. In addition, it uses its motorsports entertainment facilities for testing for teams, driving schools, riding experiences, car shows, auto fairs, concerts, and music festivals, as well as settings for television commercials, print advertisements, and motion pictures. Further, the company engages in souvenir merchandising operations. It owns and/or operates 13 motorsports entertainment facilities with approximately 761,000 grandstand seats and 560 suites. The company was formerly known as Daytona International Speedway Corporation and changed its name to International Speedway Corporation in 1968. International Speedway Corporation was founded in 1953 and is headquartered in Daytona Beach, Florida.
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