500.com (NYSE: BYD) and Boyd Gaming (NYSE:BYD) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Dividends

Boyd Gaming pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. 500.com does not pay a dividend. Boyd Gaming pays out 23.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

11.1% of 500.com shares are held by institutional investors. Comparatively, 73.6% of Boyd Gaming shares are held by institutional investors. 28.9% of Boyd Gaming shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for 500.com and Boyd Gaming, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
500.com 0 0 0 0 N/A
Boyd Gaming 0 3 8 0 2.73

Boyd Gaming has a consensus target price of $40.55, suggesting a potential upside of 13.26%. Given Boyd Gaming’s higher possible upside, analysts plainly believe Boyd Gaming is more favorable than 500.com.

Risk & Volatility

500.com has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500. Comparatively, Boyd Gaming has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Earnings & Valuation

This table compares 500.com and Boyd Gaming’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
500.com $19.83 million 27.69 -$48.73 million N/A N/A
Boyd Gaming $2.38 billion 1.69 $189.19 million $1.03 34.76

Boyd Gaming has higher revenue and earnings than 500.com.

Profitability

This table compares 500.com and Boyd Gaming’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
500.com -195.75% -22.25% -19.79%
Boyd Gaming 7.72% 12.73% 2.92%

Summary

Boyd Gaming beats 500.com on 11 of the 13 factors compared between the two stocks.

About 500.com

500.com Limited, through its subsidiaries, provides online gaming services primarily in the People's Republic of China and Europe. It operates online gaming sites, such as Multilotto.com or Multilotto.net in Curacao, Malta, the United Kingdom, and Ireland, as well as provides users with various casino services, including online slot machines and online table games. The company also operates a sports information portal and a mobile application, which offers real time soccer match information and data-driven soccer match predictions, as well as allows users to post free or pay-per-view contents, such as observations and analyses on the portal; and provides a pay-service, which offers users the ability to connect with independent sports experts to obtain information on specific sporting matches. In addition, it engages in the provision of lottery-related technologies, systems, and solutions to state-run lottery operators. Further, the company operates a platform to provide customers with online spot commodity trading for gold trade and delay products across PC and mobile devices. The company was formerly known as 500wan.com Limited and changed its name to 500.com Limited in October 2013. 500.com Limited was founded in 2001 and is based in Shenzhen, the People's Republic of China.

About Boyd Gaming

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest and South. As of December 31, 2017, the company owned and operated 24 gaming entertainment properties offering a total of 1,358,856 square feet of casino space, 30,267 slot machines, 632 table games, and 9,372 hotel rooms located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, and Mississippi. It also owns and operates a travel agency in Hawaii. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.

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