Financial Analysis: Chilco River (OTCMKTS:CRVH) vs. Churchill Downs (NASDAQ:CHDN)

Chilco River (OTCMKTS:CRVH) and Churchill Downs (NASDAQ:CHDN) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Chilco River and Churchill Downs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chilco River	0	0	0	0	0.00
Churchill Downs	0	0	10	0	3.00

Churchill Downs has a consensus price target of $136.50, indicating a potential upside of 42.16%. Given Churchill Downs’ stronger consensus rating and higher possible upside, analysts plainly believe Churchill Downs is more favorable than Chilco River.

Valuation & Earnings

This table compares Chilco River and Churchill Downs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chilco River	N/A	N/A	N/A	N/A	N/A
Churchill Downs	$2.73 billion	2.46	$426.80 million	$5.82	16.50

Churchill Downs has higher revenue and earnings than Chilco River.

Profitability

This table compares Chilco River and Churchill Downs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chilco River	N/A	N/A	N/A
Churchill Downs	15.22%	41.46%	6.10%

Volatility and Risk

Chilco River has a beta of 10.06, indicating that its stock price is 906% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Summary

Churchill Downs beats Chilco River on 9 of the 10 factors compared between the two stocks.

About Chilco River

Chilco River Holdings, Inc. engages in developing products for the consumable products market. The company is based in Los Angeles, California.

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.