Financial Comparison: Churchill Downs (CHDN) and Its Rivals

Churchill Downs (NASDAQ:CHDN) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare Churchill Downs to related businesses based on the strength of its dividends, risk, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Churchill Downs and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	1	11	0	2.92
Churchill Downs Competitors	3792	17186	25458	901	2.50

Churchill Downs currently has a consensus target price of $126.70, indicating a potential upside of 27.96%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 57.43%. Given Churchill Downs’ peers higher possible upside, analysts clearly believe Churchill Downs has less favorable growth aspects than its peers.

Dividends

Churchill Downs pays an annual dividend of $0.44 per share and has a dividend yield of 0.4%. Churchill Downs pays out 6.8% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.1% of their earnings in the form of a dividend. Churchill Downs has increased its dividend for 14 consecutive years.

Valuation and Earnings

This table compares Churchill Downs and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Churchill Downs	$2.93 billion	$383.00 million	15.38
Churchill Downs Competitors	$3.43 billion	$250.20 million	-146.34

Churchill Downs’ peers have higher revenue, but lower earnings than Churchill Downs. Churchill Downs is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Churchill Downs and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	15.15%	39.90%	6.43%
Churchill Downs Competitors	2.36%	-40.12%	2.12%

Volatility and Risk

Churchill Downs has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Churchill Downs’ peers have a beta of 1.44, indicating that their average stock price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

82.6% of Churchill Downs shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 5.9% of Churchill Downs shares are owned by insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Churchill Downs beats its peers on 9 of the 15 factors compared.

Churchill Downs Company Profile

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.