Global Business Travel Group (NYSE:GBTG) versus Caesars Entertainment (NASDAQ:CZR) Critical Survey

Caesars Entertainment (NASDAQ:CZR – Get Free Report) and Global Business Travel Group (NYSE:GBTG – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Valuation and Earnings

This table compares Caesars Entertainment and Global Business Travel Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Caesars Entertainment $11.65 billion 0.50 -$502.00 million ($2.28) -12.63
Global Business Travel Group $3.18 billion 1.56 $109.00 million $0.17 55.88

Global Business Travel Group has lower revenue, but higher earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Global Business Travel Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Caesars Entertainment and Global Business Travel Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Entertainment 1 16 2 0 2.05
Global Business Travel Group 0 6 2 0 2.25

Caesars Entertainment currently has a consensus target price of $30.71, indicating a potential upside of 6.63%. Global Business Travel Group has a consensus target price of $8.90, indicating a potential downside of 6.32%. Given Caesars Entertainment’s higher possible upside, equities research analysts clearly believe Caesars Entertainment is more favorable than Global Business Travel Group.

Insider & Institutional Ownership

91.8% of Caesars Entertainment shares are held by institutional investors. Comparatively, 82.5% of Global Business Travel Group shares are held by institutional investors. 1.2% of Caesars Entertainment shares are held by insiders. Comparatively, 5.4% of Global Business Travel Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Caesars Entertainment and Global Business Travel Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caesars Entertainment -3.99% -7.64% -0.89%
Global Business Travel Group 2.77% 2.47% 0.80%

Risk & Volatility

Caesars Entertainment has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, Global Business Travel Group has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

Global Business Travel Group beats Caesars Entertainment on 9 of the 13 factors compared between the two stocks.

About Caesars Entertainment

(Get Free Report)

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.

About Global Business Travel Group

(Get Free Report)

Global Business Travel Group, Inc. provides business-to-business (B2B) travel platform in the United States and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers, such as airlines, hotels, ground transportation, and aggregators; and third-party travel agencies. It also provides consulting, meetings and events planning, and outsourced services. Global Business Travel Group, Inc. is based in New York, New York.

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