Codere Online Luxembourg (NASDAQ:CDRO) and Churchill Downs (NASDAQ:CHDN) Critical Review

Churchill Downs (NASDAQ:CHDN) and Codere Online Luxembourg (NASDAQ:CDRO) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

Churchill Downs has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Codere Online Luxembourg has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Earnings and Valuation

This table compares Churchill Downs and Codere Online Luxembourg”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.73 billion	2.64	$426.80 million	$5.62	17.81
Codere Online Luxembourg	$200.70 million	1.75	$4.23 million	N/A	N/A

Churchill Downs has higher revenue and earnings than Codere Online Luxembourg.

Institutional & Insider Ownership

82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 10.3% of Codere Online Luxembourg shares are held by institutional investors. 5.3% of Churchill Downs shares are held by insiders. Comparatively, 1.2% of Codere Online Luxembourg shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Churchill Downs and Codere Online Luxembourg’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	15.19%	40.73%	6.02%
Codere Online Luxembourg	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for Churchill Downs and Codere Online Luxembourg, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	0	11	0	3.00
Codere Online Luxembourg	0	0	2	0	3.00

Churchill Downs currently has a consensus price target of $139.91, suggesting a potential upside of 39.81%. Codere Online Luxembourg has a consensus price target of $10.00, suggesting a potential upside of 29.87%. Given Churchill Downs’ higher probable upside, research analysts clearly believe Churchill Downs is more favorable than Codere Online Luxembourg.

Summary

Churchill Downs beats Codere Online Luxembourg on 11 of the 11 factors compared between the two stocks.

About Churchill Downs

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.

About Codere Online Luxembourg

Codere Online Luxembourg, S.A. operates as an online casino gaming and sports betting company. It also offers online casino wagering products and services, as well as online gambling and other online services. The company offers its products under the Codere and Greenplay brand names. It primarily operates in Spain, Italy, Mexico, Colombia, the United Kingdom, Germany, South Africa, Austria, Malta, Panama, and Argentina. The company is based in Luxembourg, Luxembourg.