Extended Stay America (NYSE:STAY) and Tropicana Entertainment (OTCMKTS:TPCA) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Institutional and Insider Ownership

96.7% of Extended Stay America shares are owned by institutional investors. 0.7% of Extended Stay America shares are owned by insiders. Comparatively, 83.9% of Tropicana Entertainment 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.

Valuation & Earnings

This table compares Extended Stay America and Tropicana Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Extended Stay America N/A N/A N/A N/A N/A
Tropicana Entertainment $898.19 million 0.00 $49.84 million N/A N/A

Tropicana Entertainment has higher revenue and earnings than Extended Stay America.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Extended Stay America and Tropicana Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extended Stay America 0 1 6 0 2.86
Tropicana Entertainment 0 0 0 0 N/A

Extended Stay America currently has a consensus target price of $22.36, indicating a potential upside of 25.81%.

Profitability

This table compares Extended Stay America and Tropicana Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Extended Stay America N/A N/A N/A
Tropicana Entertainment 5.77% 5.62% 4.35%

Dividends

Extended Stay America pays an annual dividend of $0.88 per share and has a dividend yield of 5.0%. Tropicana Entertainment does not pay a dividend. Extended Stay America has raised its dividend for 3 consecutive years.

Summary

Tropicana Entertainment beats Extended Stay America on 5 of the 9 factors compared between the two stocks.

Extended Stay America Company Profile

Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2018, it had 599 hotels and approximately 66,000 rooms, as well as managed 26 hotels under the Extended Stay America brand. It serves customers in the mid-priced extended stay segment. The company also relicenses Extended Stay America brand to unaffiliated third parties. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.

Tropicana Entertainment Company Profile

Tropicana Entertainment Inc. owns and operates casino and entertainment properties in the United States. It operates two casinos in Nevada; and one casino in each of Indiana, Louisiana, Mississippi, Missouri, and New Jersey, as well as a hotel, timeshare, and casino resort property located on the island of Aruba. As of December 31, 2017, the company properties included approximately 399,000 square feet of gaming space with approximately 8,000 slot machines, 270 table games and 5,800 hotel rooms. The company is headquartered in Las Vegas, Nevada. Tropicana Entertainment Inc. is a subsidiary of Icahn Enterprises Holdings L.P.

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