Critical Comparison: Flight Centre (OTCMKTS:FGETF) vs. Caesars Entertainment (NASDAQ:CZR)

Caesars Entertainment (NASDAQ:CZR) and Flight Centre (OTCMKTS:FGETF) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Caesars Entertainment and Flight Centre, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesars Entertainment	1	14	4	0	2.16
Flight Centre	0	0	1	1	3.50

Caesars Entertainment currently has a consensus price target of $32.53, suggesting a potential upside of 11.34%. Given Caesars Entertainment’s higher probable upside, research analysts plainly believe Caesars Entertainment is more favorable than Flight Centre.

Earnings and Valuation

This table compares Caesars Entertainment and Flight Centre”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caesars Entertainment	$11.49 billion	0.52	-$502.00 million	($2.37)	-12.33
Flight Centre	$1.80 billion	0.86	$70.90 million	N/A	N/A

Flight Centre has lower revenue, but higher earnings than Caesars Entertainment.

Profitability

This table compares Caesars Entertainment and Flight Centre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesars Entertainment	-4.19%	-7.88%	-0.95%
Flight Centre	N/A	N/A	N/A

Risk & Volatility

Caesars Entertainment has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Flight Centre has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Insider and Institutional Ownership

91.8% of Caesars Entertainment shares are owned by institutional investors. 1.2% of Caesars Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Flight Centre beats Caesars Entertainment on 7 of the 13 factors compared between the two stocks.

About Caesars Entertainment

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.