Dover Motorsports (NYSE: DVD) and Manchester United F.C. (NYSE:MANU) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Dover Motorsports and Manchester United F.C.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover Motorsports 18.03% 7.31% 4.71%
Manchester United F.C. -0.23% 8.17% 2.66%

Dividends

Dover Motorsports pays an annual dividend of $0.08 per share and has a dividend yield of 3.9%. Manchester United F.C. pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Dover Motorsports pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manchester United F.C. pays out 66.7% of its earnings in the form of a dividend. Manchester United F.C. has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

24.6% of Dover Motorsports shares are owned by institutional investors. Comparatively, 87.1% of Manchester United F.C. shares are owned by institutional investors. 50.3% of Dover Motorsports shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Dover Motorsports and Manchester United F.C.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dover Motorsports $46.74 million 1.61 $8.42 million $0.10 20.50
Manchester United F.C. $737.29 million 1.01 $49.68 million $0.27 68.52

Manchester United F.C. has higher revenue and earnings than Dover Motorsports. Dover Motorsports is trading at a lower price-to-earnings ratio than Manchester United F.C., indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Dover Motorsports has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Manchester United F.C. has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Dover Motorsports and Manchester United F.C., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Motorsports 0 0 1 0 3.00
Manchester United F.C. 0 0 2 0 3.00

Manchester United F.C. has a consensus target price of $20.50, suggesting a potential upside of 10.81%. Given Manchester United F.C.’s higher probable upside, analysts plainly believe Manchester United F.C. is more favorable than Dover Motorsports.

Summary

Manchester United F.C. beats Dover Motorsports on 11 of the 16 factors compared between the two stocks.

About Dover Motorsports

Dover Motorsports, Inc. markets and promotes motorsports entertainment in the United States. It owns and operates Dover International Speedway in Dover, Delaware; and Nashville Superspeedway near Nashville, Tennessee. The company was formerly known as Dover Downs Entertainment, Inc. Dover Motorsports, Inc. was founded in 1969 and is based in Dover, Delaware.

About Manchester United F.C.

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. The company operates Manchester United Football Club, a professional football club. It develops marketing and sponsorship relationships with regional and international companies to leverage its brand. The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products ranging from coffee mugs to bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company's partners' wholesale distribution channels. In addition, it markets mobile and content to its followers through its Website, www.manutd.com, and associated mobile properties. Further, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, European competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Additionally, it offers a direct to consumer mobile application in approximately 168 territories; and operates Old Trafford, a sports venue with 75,457 seats. The company was founded in 1878 and is based in Manchester, the United Kingdom. Manchester United plc is a subsidiary of Red Football LLC.

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