Contrasting Churchill Downs (NASDAQ:CHDN) and BT Brands (NASDAQ:BTBD)

BT Brands (NASDAQ:BTBD – Get Free Report) and Churchill Downs (NASDAQ:CHDN – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Risk and Volatility

BT Brands has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for BT Brands and Churchill Downs, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BT Brands 1 0 0 0 1.00
Churchill Downs 0 1 10 0 2.91

Churchill Downs has a consensus price target of $133.90, indicating a potential upside of 67.33%. Given Churchill Downs’ stronger consensus rating and higher possible upside, analysts clearly believe Churchill Downs is more favorable than BT Brands.

Earnings & Valuation

This table compares BT Brands and Churchill Downs”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BT Brands $13.49 million 0.78 -$690,000.00 ($0.09) -18.83
Churchill Downs $2.93 billion 1.91 $383.00 million $5.83 13.73

Churchill Downs has higher revenue and earnings than BT Brands. BT Brands is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BT Brands and Churchill Downs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BT Brands -4.57% -8.99% -5.45%
Churchill Downs 13.82% 42.16% 6.31%

Institutional and Insider Ownership

0.4% of BT Brands shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 19.6% of BT Brands shares are owned by insiders. Comparatively, 5.9% of Churchill Downs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Churchill Downs beats BT Brands on 13 of the 14 factors compared between the two stocks.

About BT Brands

(Get Free Report)

BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates Burger Time restaurants located in Minnesota, North Dakota, and South Dakota; and a Dairy Queen franchise in Ham Lake, Minnesota. Its Burger Time restaurants provide various burgers and other food products, such as chicken sandwiches, pulled pork sandwiches, chicken chunks, side dishes, and soft drinks; and Dairy Queen restaurant offers burgers, chicken, sides, ice cream and other desserts, and various beverages. The company was founded in 1987 and is based in West Fargo, North Dakota.

About Churchill Downs

(Get Free Report)

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

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