Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) and Caesars Entertainment (NASDAQ:CZR – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Risk and Volatility
Dave & Buster’s Entertainment has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.
Insider & Institutional Ownership
91.4% of Dave & Buster’s Entertainment shares are held by institutional investors. Comparatively, 91.8% of Caesars Entertainment shares are held by institutional investors. 1.7% of Dave & Buster’s Entertainment shares are held by insiders. Comparatively, 1.2% of Caesars Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dave & Buster’s Entertainment | $2.10 billion | 0.11 | -$48.70 million | ($2.57) | -2.49 |
| Caesars Entertainment | $11.49 billion | 0.52 | -$502.00 million | ($2.28) | -12.98 |
Dave & Buster’s Entertainment has higher earnings, but lower revenue than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Dave & Buster’s Entertainment and Caesars Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dave & Buster’s Entertainment | -4.26% | -51.87% | -1.29% |
| Caesars Entertainment | -3.99% | -7.64% | -0.89% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Dave & Buster’s Entertainment and Caesars Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave & Buster’s Entertainment | 1 | 6 | 2 | 0 | 2.11 |
| Caesars Entertainment | 2 | 15 | 2 | 0 | 2.00 |
Dave & Buster’s Entertainment currently has a consensus price target of $17.33, suggesting a potential upside of 170.41%. Caesars Entertainment has a consensus price target of $30.71, suggesting a potential upside of 3.80%. Given Dave & Buster’s Entertainment’s stronger consensus rating and higher probable upside, equities analysts plainly believe Dave & Buster’s Entertainment is more favorable than Caesars Entertainment.
Summary
Caesars Entertainment beats Dave & Buster’s Entertainment on 7 of the 13 factors compared between the two stocks.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
About Caesars Entertainment
Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.
Receive News & Ratings for Dave & Buster's Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dave & Buster's Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.