Speedway Motorsports (NYSE:TRK) and International Speedway (OTCMKTS:ISCB) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Volatility & Risk

Speedway Motorsports has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, International Speedway has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Speedway Motorsports and International Speedway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Speedway Motorsports 35.01% 5.51% 3.53%
International Speedway 38.82% 5.59% 3.88%

Insider and Institutional Ownership

21.7% of Speedway Motorsports shares are owned by institutional investors. Comparatively, 0.0% of International Speedway shares are owned by institutional investors. 72.0% of Speedway Motorsports shares are owned by company insiders. Comparatively, 72.6% of International Speedway shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Speedway Motorsports and International Speedway, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Speedway Motorsports 0 0 0 0 N/A
International Speedway 0 0 0 0 N/A

Dividends

Speedway Motorsports pays an annual dividend of $0.60 per share and has a dividend yield of 3.6%. International Speedway pays an annual dividend of $0.47 per share and has a dividend yield of 1.1%. Speedway Motorsports pays out 65.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Speedway Motorsports and International Speedway’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Speedway Motorsports $453.59 million 1.52 $148.24 million $0.91 18.51
International Speedway $671.43 million 2.77 $110.82 million N/A N/A

Speedway Motorsports has higher earnings, but lower revenue than International Speedway.

Summary

International Speedway beats Speedway Motorsports on 9 of the 12 factors compared between the two stocks.

Speedway Motorsports Company Profile

Speedway Motorsports, Inc., through its subsidiaries, promotes, markets, and sponsors motorsports activities in the United States. The company owns and operates eight racing facilities, including Atlanta Motor Speedway, Bristol Motor Speedway, Charlotte Motor Speedway, Kentucky Speedway, Las Vegas Motor Speedway, New Hampshire Motor Speedway, Sonoma Raceway, and Texas Motor Speedway racing facilities. As of December 31, 2017, its racing facilities included total seating capacity of approximately 715,000 with 754 luxury suites. The company also provides souvenir merchandising, including screen-printing and embroidery, as well as food, beverage, and hospitality catering services; and radio programming, production, and distribution services. In addition, it manufactures and distributes modified racing cars and parts; produces and sells micro-lubricant; distributes, wholesales, and retails motorsports and other sports-related souvenir merchandise and apparel; leases oil and gas mineral rights; and rents office, warehouse, and industrial park space, as well as track rentals for motorsports and non-motorsports events and activities, and driving schools. The company was founded in 1959 and is headquartered in Concord, North Carolina. Speedway Motorsports Inc. is a subsidiary of Sonic Financial Corporation.

International Speedway Company Profile

International Speedway Corporation, together with its subsidiaries, promotes motorsports themed entertainment activities in the United States. Its motorsports themed event operations consist principally of racing events at its motorsports entertainment facilities, which promote approximately 100 stock car, open wheel, sports car, truck, motorcycle, and other racing events. The company is also involved in food and beverage concession operations; the provision of catering services in suites and chalets; and the creation of motorsports-related programming content carried on radio stations, as well as Sirius XM Radio, a national satellite radio service. In addition, it uses its motorsports entertainment facilities for testing for teams, driving schools, riding experiences, car shows, auto fairs, concerts, and music festivals, as well as settings for television commercials, print advertisements, and motion pictures. Further, the company engages in souvenir merchandising operations. It owns and/or operates 13 motorsports entertainment facilities with approximately 761,000 grandstand seats and 560 suites. The company was formerly known as Daytona International Speedway Corporation and changed its name to International Speedway Corporation in 1968. International Speedway Corporation was founded in 1953 and is headquartered in Daytona Beach, Florida.

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