Critical Review: The Star Entertainment Group (EHGRF) vs. The Competition

Profitability

This table compares The Star Entertainment Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Star Entertainment Group	N/A	N/A	N/A
The Star Entertainment Group Competitors	-9.46%	-35.99%	1.90%

Institutional & Insider Ownership

23.3% of The Star Entertainment Group shares are held by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 21.9% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares The Star Entertainment Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The Star Entertainment Group	N/A	N/A	1.09
The Star Entertainment Group Competitors	$3.34 billion	$246.75 million	10.72

The Star Entertainment Group’s competitors have higher revenue and earnings than The Star Entertainment Group. The Star Entertainment Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

The Star Entertainment Group pays an annual dividend of $0.02 per share and has a dividend yield of 14.3%. The Star Entertainment Group pays out 15.5% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.4% and pay out 45.3% of their earnings in the form of a dividend. The Star Entertainment Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

The Star Entertainment Group competitors beat The Star Entertainment Group on 5 of the 9 factors compared.

The Star Entertainment Group Company Profile

The Star Entertainment Group Limited operates and manages integrated resorts in Australia. It operates through three segments: Sydney, Gold Coast, and Brisbane. The company owns and operates The Star Sydney, The Star Gold Coast, and Treasury Brisbane casinos, which include hotels, restaurants, bars, theatres, and other entertainment facilities. It also manages the Gold Coast Convention and Exhibition Centre. The company was formerly known as Echo Entertainment Group Limited and changed its name to The Star Entertainment Group Limited in November 2015. The Star Entertainment Group Limited was incorporated in 2011 and is based in Brisbane, Australia.