Reviewing Boyd Gaming (BYD) and Its Peers

Boyd Gaming (NYSE:BYD) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its peers? We will compare Boyd Gaming to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.

Dividends

Boyd Gaming pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Boyd Gaming pays out 12.1% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.4% of their earnings in the form of a dividend. Boyd Gaming has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of current ratings for Boyd Gaming and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boyd Gaming	0	8	7	1	2.56
Boyd Gaming Competitors	3800	17249	25549	902	2.50

Boyd Gaming currently has a consensus target price of $89.46, indicating a potential upside of 15.94%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.68%. Given Boyd Gaming’s peers higher probable upside, analysts clearly believe Boyd Gaming has less favorable growth aspects than its peers.

Risk and Volatility

Boyd Gaming has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Boyd Gaming’s peers have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Valuation & Earnings

This table compares Boyd Gaming and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Boyd Gaming	$4.09 billion	$1.84 billion	11.66
Boyd Gaming Competitors	$3.65 billion	$250.20 million	-159.66

Boyd Gaming has higher revenue and earnings than its peers. Boyd Gaming is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Boyd Gaming and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boyd Gaming	12.29%	22.32%	8.48%
Boyd Gaming Competitors	2.45%	-40.43%	2.13%

Institutional and Insider Ownership

76.8% of Boyd Gaming shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 22.8% of Boyd Gaming shares are owned by insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Boyd Gaming beats its peers on 11 of the 15 factors compared.

About Boyd Gaming

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.