Head-To-Head Comparison: Boyd Gaming (NYSE:BYD) and Rave Restaurant Group (NASDAQ:RAVE)

Boyd Gaming (NYSE:BYD) and Rave Restaurant Group (NASDAQ:RAVE) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

76.8% of Boyd Gaming shares are owned by institutional investors. Comparatively, 15.1% of Rave Restaurant Group shares are owned by institutional investors. 22.8% of Boyd Gaming shares are owned by company insiders. Comparatively, 28.0% of Rave Restaurant Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Boyd Gaming has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Rave Restaurant Group has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Earnings & Valuation

This table compares Boyd Gaming and Rave Restaurant Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boyd Gaming	$4.09 billion	1.32	$1.84 billion	$6.62	11.56
Rave Restaurant Group	$12.91 million	2.34	$2.88 million	$0.21	10.10

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

Profitability

This table compares Boyd Gaming and Rave Restaurant Group’s 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%
Rave Restaurant Group	22.29%	17.94%	15.84%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Boyd Gaming and Rave Restaurant Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boyd Gaming	0	8	7	1	2.56
Rave Restaurant Group	0	1	0	0	2.00

Boyd Gaming currently has a consensus target price of $89.46, suggesting a potential upside of 16.92%. Given Boyd Gaming’s stronger consensus rating and higher possible upside, analysts clearly believe Boyd Gaming is more favorable than Rave Restaurant Group.

Summary

Boyd Gaming beats Rave Restaurant Group on 11 of the 15 factors compared between the two stocks.

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.

About Rave Restaurant Group

Rave Restaurant Group, Inc., together with its subsidiaries, engages in the operation and franchising of pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn and Pie Five trademarks in the United States and internationally. The company operates through three segments: Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants. Its buffet restaurants are located in free standing buildings or strip centers in retail developments that offer dine-in, carryout, and catering services, as well as delivery services. The company’s delco restaurants provide delivery and carryout services and are located in shopping centers or other in-line retail developments. Its Express restaurants serve customers through various non-traditional points of sale and are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. The company’s Pizza Inn Express restaurants serve customers through a non-traditional, licensed, pizza-only model called Pizza Inn Express, located at production-oriented facilities. In addition, it operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.