Caesars Acquisition Company (NASDAQ: CACQ) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitabiliy, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Caesars Acquisition Company and Century Casinos, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Acquisition Company 0 0 0 0 N/A
Century Casinos 0 1 1 0 2.50

Century Casinos has a consensus price target of $9.30, indicating a potential upside of 22.69%. Given Century Casinos’ higher possible upside, analysts plainly believe Century Casinos is more favorable than Caesars Acquisition Company.

Insider and Institutional Ownership

56.1% of Caesars Acquisition Company shares are held by institutional investors. Comparatively, 73.3% of Century Casinos shares are held by institutional investors. 0.2% of Caesars Acquisition Company shares are held by company insiders. Comparatively, 13.7% of Century Casinos shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Caesars Acquisition Company and Century Casinos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caesars Acquisition Company N/A 40.09% 36.19%
Century Casinos 6.39% 6.67% 4.35%

Risk and Volatility

Caesars Acquisition Company has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Century Casinos has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500.

Valuation & Earnings

This table compares Caesars Acquisition Company and Century Casinos’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Caesars Acquisition Company N/A N/A N/A $4.42 4.43
Century Casinos $142.41 million 1.30 $25.16 million $0.37 20.49

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

Summary

Century Casinos beats Caesars Acquisition Company on 7 of the 11 factors compared between the two stocks.

Caesars Acquisition Company Company Profile

Caesars Acquisition Company (CAC) owns voting membership units of Caesars Growth Partners, LLC (CGP LLC), a joint venture between CAC and subsidiaries of Caesars Entertainment Corporation (CEC or Caesars Entertainment). CAC serves as CGP LLC’s managing member and sole holder of its outstanding voting units. CGP LLC is a casino asset and entertainment company. Through its relationship with Caesars Entertainment, CGP LLC has the ability to access Caesars Entertainment’s management know-how, brand equity, Total Rewards loyalty program and structural synergies. As of December 31, 2016, CGP LLC’s Interactive Entertainment business consisted of two operating units: The World Series of Poker (WSOP) and regulated online real money gaming (RMG). CGP LLC’s casino properties and developments include Planet Hollywood Resort & Casino in Las Vegas (Planet Hollywood), The LINQ Hotel & Casino, Bally’s Las Vegas, The Cromwell, Horseshoe Baltimore Casino (Horseshoe Baltimore) and Harrah’s New Orleans.

Century Casinos Company Profile

Century Casinos, Inc. is an international casino entertainment company. The Company develops and operates gaming establishments, as well as related lodging, restaurant and entertainment facilities around the world. Its segments include Canada, the United States, Poland, and Corporate and Other. The Canada segment consists of Century Casino & Hotel-Edmonton; Century Casino Calgary; Century Downs Racetrack and Casino, and Century Bets! Inc. (Century Bets). The United States segment comprises Century Casino & Hotel-Central City, and Century Casino & Hotel-Cripple Creek. The Poland segment consists of Casinos Poland. The Corporate and Other segment comprises Cruise Ships and other. The Company owns casino operations in North America; holds interest in casinos throughout Poland; holds a racetrack and entertainment center (REC) in Canada and the pari-mutuel off-track betting network in southern Alberta; manages a casino in Aruba, and provides gaming services in Argentina.

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