Churchill Downs (NASDAQ:CHDN) and Expedia Group (NASDAQ:EXPE) Head to Head Comparison

Expedia Group (NASDAQ:EXPE) and Churchill Downs (NASDAQ:CHDN) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

Expedia Group has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Expedia Group and Churchill Downs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expedia Group	12.97%	87.32%	7.85%
Churchill Downs	13.82%	42.16%	6.31%

Valuation & Earnings

This table compares Expedia Group and Churchill Downs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expedia Group	$14.73 billion	2.27	$1.29 billion	$16.04	17.34
Churchill Downs	$2.93 billion	1.94	$383.00 million	$5.83	13.98

Expedia Group has higher revenue and earnings than Churchill Downs. Churchill Downs is trading at a lower price-to-earnings ratio than Expedia Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Expedia Group and Churchill Downs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expedia Group	1	20	18	0	2.44
Churchill Downs	0	1	10	0	2.91

Expedia Group currently has a consensus price target of $316.37, suggesting a potential upside of 13.77%. Churchill Downs has a consensus price target of $129.22, suggesting a potential upside of 58.52%. Given Churchill Downs’ stronger consensus rating and higher probable upside, analysts plainly believe Churchill Downs is more favorable than Expedia Group.

Institutional & Insider Ownership

90.8% of Expedia Group shares are held by institutional investors. Comparatively, 82.6% of Churchill Downs shares are held by institutional investors. 5.2% of Expedia Group shares are held by company insiders. Comparatively, 5.9% of Churchill Downs shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Expedia Group pays an annual dividend of $1.92 per share and has a dividend yield of 0.7%. Churchill Downs pays an annual dividend of $0.44 per share and has a dividend yield of 0.5%. Expedia Group pays out 12.0% of its earnings in the form of a dividend. Churchill Downs pays out 7.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Churchill Downs has raised its dividend for 14 consecutive years.

Summary

Expedia Group beats Churchill Downs on 11 of the 17 factors compared between the two stocks.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

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.