Churchill Downs (CHDN) & Its Rivals Critical Comparison

Churchill Downs (NASDAQ:CHDN) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its competitors? We will compare Churchill Downs to related businesses based on the strength of its analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Earnings & Valuation

This table compares Churchill Downs and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Churchill Downs	$2.93 billion	$383.00 million	15.21
Churchill Downs Competitors	$3.31 billion	$250.20 million	-155.65

Churchill Downs’ competitors have higher revenue, but lower earnings than Churchill Downs. Churchill Downs is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Churchill Downs and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	15.15%	39.90%	6.43%
Churchill Downs Competitors	2.31%	-40.03%	2.12%

Risk and Volatility

Churchill Downs has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Churchill Downs’ competitors have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.

Dividends

Churchill Downs pays an annual dividend of $0.44 per share and has a dividend yield of 0.4%. Churchill Downs pays out 6.8% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.8% of their earnings in the form of a dividend. Churchill Downs has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Churchill Downs and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	1	11	0	2.92
Churchill Downs Competitors	3806	17282	25595	905	2.50

Churchill Downs presently has a consensus price target of $126.70, suggesting a potential upside of 29.36%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.76%. Given Churchill Downs’ competitors higher possible upside, analysts plainly believe Churchill Downs has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

82.6% of Churchill Downs shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 5.9% of Churchill Downs shares are owned by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Churchill Downs beats its competitors on 9 of the 15 factors compared.

Churchill Downs Company Profile

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.