Century Casinos (CNTY) versus Eldorado Resorts (ERI) Critical Survey

Eldorado Resorts (NASDAQ: ERI) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Eldorado Resorts and Century Casinos, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Resorts 0 1 7 0 2.88
Century Casinos 0 1 2 0 2.67

Eldorado Resorts presently has a consensus target price of $46.81, suggesting a potential upside of 5.18%. Century Casinos has a consensus target price of $12.00, suggesting a potential upside of 42.69%. Given Century Casinos’ higher probable upside, analysts plainly believe Century Casinos is more favorable than Eldorado Resorts.

Valuation and Earnings

This table compares Eldorado Resorts and Century Casinos’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Resorts $1.47 billion 2.33 $73.93 million $0.01 4,450.00
Century Casinos $154.07 million 1.60 $6.25 million $0.45 18.69

Eldorado Resorts has higher revenue and earnings than Century Casinos. Century Casinos is trading at a lower price-to-earnings ratio than Eldorado Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Eldorado Resorts and Century Casinos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eldorado Resorts 5.62% 2.81% 0.71%
Century Casinos 3.17% 6.15% 4.14%

Volatility and Risk

Eldorado Resorts has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500.

Insider & Institutional Ownership

87.2% of Eldorado Resorts shares are held by institutional investors. Comparatively, 77.6% of Century Casinos shares are held by institutional investors. 1.5% of Eldorado Resorts shares are held by insiders. Comparatively, 14.5% of Century Casinos shares are held by 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.

Summary

Eldorado Resorts beats Century Casinos on 9 of the 14 factors compared between the two stocks.

Eldorado Resorts Company Profile

Eldorado Resorts, Inc., a gaming and hospitality company, owns and operates gaming facilities in Ohio, Louisiana, Nevada, Pennsylvania, West Virginia, Colorado, Florida, Iowa, Mississippi, and Missouri. It owns and operates Eldorado Resort Casino Reno, a 814-room hotel, casino and entertainment facility; Silver Legacy Resort Casino, a 1,711-room themed hotel and casino; Circus Circus Reno, a 1,571-room hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a 403-room, all suite art deco-style hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a 357-room hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino. The company also owns and operates Isle Casino Hotel?Black Hawk, a land-based casino; Lady Luck Casino?Black Hawk, a land-based casino; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based single-level casino; Isle Casino Waterloo, a SINGLE-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a gaming vessel; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg, a dockside casino; Isle of Capri Casino Boonville, a single-level dockside casino; Isle Casino Cape Girardeau, a dockside casino and pavilion and entertainment center; Lady Luck Casino Caruthersville, a riverboat casino; Isle of Capri Casino Kansas City, a dockside casino; and Lady Luck Casino Nemacolin, a casino property, as well as operates Racelinebet.com, which offers online and telephone wagering services on horse races. As of December 31, 2017, it owned and operated approximately 950,000 square feet of casino space with approximately 21,000 slot machines and video lottery terminals, 600 table and poker games, and 7,000 hotel rooms. Eldorado Resorts, Inc. was founded in 1973 and is based in Reno, Nevada.

Century Casinos Company Profile

Century Casinos, Inc. operates as a casino entertainment company worldwide. The company develops and operates gaming establishments, as well as related lodging, restaurant, horse racing, and entertainment facilities. It owns and operates casinos in North America and Poland; a racetrack and entertainment center in Canada; and pari-mutuel off-track betting network in southern Alberta, Canada. The company also manages cruise ship-based casinos; and provides gaming services in Argentina. As of March 9, 2018, it operated 14 ship-based casinos. The company was founded in 1992 and is based in Colorado Springs, Colorado.

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