Head to Head Review: Universal Entertainment (OTCMKTS:UETMF) vs. Boyd Gaming (NYSE:BYD)

Universal Entertainment (OTCMKTS:UETMFGet Free Report) and Boyd Gaming (NYSE:BYDGet Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Universal Entertainment has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Boyd Gaming has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Universal Entertainment and Boyd Gaming, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Entertainment 0 0 0 0 0.00
Boyd Gaming 0 10 6 0 2.38

Boyd Gaming has a consensus target price of $89.54, suggesting a potential upside of 5.33%. Given Boyd Gaming’s stronger consensus rating and higher possible upside, analysts clearly believe Boyd Gaming is more favorable than Universal Entertainment.

Valuation and Earnings

This table compares Universal Entertainment and Boyd Gaming”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Entertainment $835.53 million 0.61 -$102.75 million ($0.59) -11.11
Boyd Gaming $3.93 billion 1.69 $577.95 million $22.88 3.72

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

Insider & Institutional Ownership

76.8% of Boyd Gaming shares are owned by institutional investors. 22.0% of Boyd Gaming shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Universal Entertainment and Boyd Gaming’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Entertainment -5.30% 14.42% 8.49%
Boyd Gaming 46.02% 34.63% 9.34%

Summary

Boyd Gaming beats Universal Entertainment on 14 of the 14 factors compared between the two stocks.

About Universal Entertainment

(Get Free Report)

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

About Boyd Gaming

(Get Free Report)

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.

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