Reviewing Marcus (NYSE:MCS) & Caesars Entertainment (NASDAQ:CZR)

Caesars Entertainment (NASDAQ:CZRGet Free Report) and Marcus (NYSE:MCSGet Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares Caesars Entertainment and Marcus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caesars Entertainment -2.12% -5.76% -0.75%
Marcus 1.02% 1.71% 0.76%

Analyst Ratings

This is a summary of recent recommendations for Caesars Entertainment and Marcus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Entertainment 2 5 12 1 2.60
Marcus 0 2 3 1 2.83

Caesars Entertainment currently has a consensus target price of $34.61, indicating a potential upside of 48.32%. Marcus has a consensus target price of $23.75, indicating a potential upside of 51.95%. Given Marcus’ stronger consensus rating and higher possible upside, analysts clearly believe Marcus is more favorable than Caesars Entertainment.

Insider & Institutional Ownership

91.8% of Caesars Entertainment shares are held by institutional investors. Comparatively, 81.6% of Marcus shares are held by institutional investors. 1.0% of Caesars Entertainment shares are held by insiders. Comparatively, 5.0% of Marcus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Caesars Entertainment and Marcus”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Caesars Entertainment $11.25 billion 0.42 -$278.00 million ($1.15) -20.29
Marcus $735.56 million 0.65 -$7.79 million $0.24 65.13

Marcus has lower revenue, but higher earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Caesars Entertainment has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, Marcus has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Summary

Marcus beats Caesars Entertainment on 10 of the 14 factors compared between the two stocks.

About Caesars Entertainment

(Get Free Report)

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

About Marcus

(Get Free Report)

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

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