Critical Analysis: Red Robin Gourmet Burgers (NASDAQ:RRGB) and Century Casinos (NASDAQ:CNTY)

Red Robin Gourmet Burgers (NASDAQ:RRGB) and Century Casinos (NASDAQ:CNTY) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. Comparatively, 66.4% of Century Casinos shares are owned by institutional investors. 4.1% of Red Robin Gourmet Burgers shares are owned by company insiders. Comparatively, 15.0% of Century Casinos shares 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.

Profitability

This table compares Red Robin Gourmet Burgers and Century Casinos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Robin Gourmet Burgers	-2.55%	N/A	-2.65%
Century Casinos	-9.62%	-3,789.52%	-4.93%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Red Robin Gourmet Burgers and Century Casinos, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Robin Gourmet Burgers	2	0	2	0	2.00
Century Casinos	1	0	0	0	1.00

Red Robin Gourmet Burgers currently has a consensus price target of $8.33, suggesting a potential downside of 7.51%. Century Casinos has a consensus price target of $3.00, suggesting a potential upside of 445.45%. Given Century Casinos’ higher probable upside, analysts plainly believe Century Casinos is more favorable than Red Robin Gourmet Burgers.

Valuation and Earnings

This table compares Red Robin Gourmet Burgers and Century Casinos”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Robin Gourmet Burgers	$1.19 billion	0.14	-$23.28 million	($1.69)	-5.33
Century Casinos	$572.97 million	0.03	-$61.42 million	($1.93)	-0.28

Red Robin Gourmet Burgers has higher revenue and earnings than Century Casinos. Red Robin Gourmet Burgers is trading at a lower price-to-earnings ratio than Century Casinos, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Red Robin Gourmet Burgers has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Summary

Red Robin Gourmet Burgers beats Century Casinos on 11 of the 13 factors compared between the two stocks.

About Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) operates and franchises full-service casual dining restaurants under the Red Robin Gourmet Burgers and Brews brand. The company is known for its gourmet burgers, including customizable burger offerings, and provides a family-oriented dining experience. Red Robin restaurants serve a broad menu that includes burgers, chicken sandwiches, wraps, salads, appetizers, entrees, desserts, milkshakes and other beverages. Many locations also offer takeout, delivery and catering services, allowing the company to serve customers both in its restaurants and through off-premise channels.

About Century Casinos

Century Casinos, Inc. is a gaming and entertainment company that owns, operates and develops casinos, racetracks and related hospitality properties. Its businesses offer casino gaming, sports wagering in certain jurisdictions, dining, entertainment and hotel accommodations. The company operates properties in the United States, including casinos and racetrack-related gaming facilities in Colorado, Missouri, West Virginia and Maryland. Its U.S. portfolio includes Century Casino & Hotel Cripple Creek, Century Casino Central City, Century Casino Cape Girardeau, Century Casino Caruthersville, Mountaineer Casino, Racetrack & Resort and Rocky Gap Casino Resort.