Reviewing Caesars Entertainment (NASDAQ:CZR) & Sweetgreen (NYSE:SG)

Caesars Entertainment (NASDAQ:CZR) and Sweetgreen (NYSE:SG) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Volatility & Risk

Caesars Entertainment has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Sweetgreen has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Caesars Entertainment	-3.99%	-7.64%	-0.89%
Sweetgreen	2.01%	-32.94%	-16.42%

Institutional and Insider Ownership

91.8% of Caesars Entertainment shares are owned by institutional investors. Comparatively, 95.8% of Sweetgreen shares are owned by institutional investors. 1.2% of Caesars Entertainment shares are owned by insiders. Comparatively, 18.2% of Sweetgreen 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Caesars Entertainment and Sweetgreen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesars Entertainment	1	16	2	0	2.05
Sweetgreen	3	9	6	0	2.17

Caesars Entertainment presently has a consensus target price of $30.71, indicating a potential upside of 3.50%. Sweetgreen has a consensus target price of $7.72, indicating a potential downside of 15.16%. Given Caesars Entertainment’s higher possible upside, equities analysts clearly believe Caesars Entertainment is more favorable than Sweetgreen.

Earnings and Valuation

This table compares Caesars Entertainment and Sweetgreen”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	0.53	-$502.00 million	($2.28)	-13.02
Sweetgreen	$679.47 million	1.60	-$134.07 million	$0.10	91.05

Sweetgreen has lower revenue, but higher earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Sweetgreen, indicating that it is currently the more affordable of the two stocks.

Summary

Sweetgreen beats Caesars Entertainment on 10 of the 14 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 Sweetgreen

Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.