Stars Group (NASDAQ:TSG) and Golden Entertainment (NASDAQ:GDEN) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Stars Group and Golden Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stars Group -4.99% 16.48% 6.08%
Golden Entertainment -1.09% -1.65% -0.41%

Earnings & Valuation

This table compares Stars Group and Golden Entertainment’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stars Group $2.03 billion 2.24 -$102.45 million $2.19 7.60
Golden Entertainment $509.81 million 0.71 $2.17 million $0.34 38.24

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

Analyst Recommendations

This is a breakdown of current recommendations for Stars Group and Golden Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stars Group 0 2 5 0 2.71
Golden Entertainment 0 0 3 0 3.00

Stars Group currently has a consensus price target of $29.20, suggesting a potential upside of 75.48%. Golden Entertainment has a consensus price target of $24.67, suggesting a potential upside of 89.74%. Given Golden Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Golden Entertainment is more favorable than Stars Group.

Risk and Volatility

Stars Group has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Golden Entertainment has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Institutional & Insider Ownership

60.7% of Stars Group shares are owned by institutional investors. Comparatively, 65.4% of Golden Entertainment shares are owned by institutional investors. 33.8% of Golden Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

About Stars Group

The Stars Group Inc. engages in online gaming and betting businesses primarily in Europe, Australia, and the Americas. It owns and operates gaming and related interactive entertainment businesses, such as online real-money poker, casino and betting, play-money poker, and casino and sports prediction games, which are delivered through mobile, Web, and desktop applications. The company provides its products under various owned or licensed gaming and related consumer businesses and brands, including PokerStars, PokerStars Casino, BetStars, Full Tilt, BetEasy, Sky Bet, Sky Vegas, Sky Casino, Sky Bingo, Sky Poker, and Oddschecker, as well as live poker tour and events brands, such as PokerStars Players No Limit Hold'em Championship, European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker Tour, PokerStars Festival, and PokerStars MEGASTACK. The company was formerly known as Amaya, Inc. and changed its name to The Stars Group Inc. in August 2017. The Stars Group Inc. was founded in 2004 and is headquartered in Toronto, Canada.

About Golden Entertainment

Golden Entertainment, Inc., together with its subsidiaries, focuses on distributed gaming, and resort casino operations in the United States. The Distributed Gaming segment is involved in the installation, maintenance, and operation of slots and amusement devices in non-casino locations, such as grocery stores, convenience stores, restaurants, bars, taverns, and liquor stores; and operation of branded taverns targeting local patrons primarily in the greater Las Vegas, Nevada metropolitan area. The Casinos segment owns and operates 8 resort casino properties, including The Stratosphere that offers 2,430 hotel rooms, 748 slots, 42 table games, a race and sports book, 15 restaurants, 2 rooftop pools, a fitness center, and retail shops and entertainment facilities; Arizona Charlie's Decatur with 260 hotel rooms, 1,037 slots, 7 table games, race and sports books, 6 restaurants, and a 300 seat bingo parlor; and Arizona Charlie's Boulder with 300 hotel rooms, 839 slots, 7 table games, race and sports books, 4 restaurants, and a 450-seat bingo parlor, as well as recreational vehicle park (RV) with 220 RV hook-up sites in Las Vegas, Nevada. This segments also operates the Aquarius with 1,900 hotel rooms, 1,232 slots, 33 table games, and 10 restaurants in Laughlin, Nevada; Pahrump casinos with 419 slots, 8 table games, a race and sports book, a 200-seat bingo facility, and a bowling center, as well as 70 hotel rooms; Gold Town Casino with 226 slots and a 100-seat bingo facility; and Lakeside Casino & RV Park with 188 slots and 160 RV hook-up sites in Pahrump, Nevada; and Rocky Gap with 665 slots, 17 table games, 2 casino bars, 3 restaurants, a spa, and the Jack Nicklaus signature golf course, as well as 200 hotel rooms and an event and conference center in Flintstone, Maryland. The company was formerly known as Lakes Entertainment, Inc. and changed its name to Golden Entertainment, Inc. in July 2015. The company was founded in 1998 and is headquartered in Las Vegas, Nevada.

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