Reviewing RedBall Acquisition (NYSE:RBAC) & SeaWorld Entertainment (NYSE:SEAS)

RedBall Acquisition (NYSE:RBACGet Rating) and SeaWorld Entertainment (NYSE:SEASGet Rating) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Institutional & Insider Ownership

67.9% of RedBall Acquisition shares are held by institutional investors. 1.0% of SeaWorld Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares RedBall Acquisition and SeaWorld Entertainment’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RedBall Acquisition N/A N/A $6.78 million N/A N/A
SeaWorld Entertainment $1.50 billion 2.67 $256.51 million $3.67 15.06

SeaWorld Entertainment has higher revenue and earnings than RedBall Acquisition.

Risk and Volatility

RedBall Acquisition has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, SeaWorld Entertainment has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for RedBall Acquisition and SeaWorld Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RedBall Acquisition 0 0 0 0 N/A
SeaWorld Entertainment 0 3 6 0 2.67

SeaWorld Entertainment has a consensus price target of $79.89, indicating a potential upside of 44.52%. Given SeaWorld Entertainment’s higher probable upside, analysts plainly believe SeaWorld Entertainment is more favorable than RedBall Acquisition.

Profitability

This table compares RedBall Acquisition and SeaWorld Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RedBall Acquisition N/A -13.41% -2.25%
SeaWorld Entertainment 18.25% -690.93% 12.69%

Summary

SeaWorld Entertainment beats RedBall Acquisition on 8 of the 10 factors compared between the two stocks.

About RedBall Acquisition (Get Rating)

RedBall Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more businesses. It intends to focus on sports, media, and data analytics sectors. RedBall Acquisition Corp. was incorporated in 2020 and is based in New York, New York.

About SeaWorld Entertainment (Get Rating)

SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. The company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, as well as Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. It also operates water park attractions in Orlando, Florida; San Antonio, Texas; San Diego, California; Chula Vista, California; Tampa, Florida; and Williamsburg, Virginia. In addition, the company operates a reservations-only theme park in Orlando, Florida and a park in Langhorne, Pennsylvania. It operates a portfolio of twelve theme parks under the SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Water Country USA, Adventure Island, and Sesame Place brands. The company was formerly known as SW Holdco, Inc. and changed its name to SeaWorld Entertainment, Inc. in December 2012. SeaWorld Entertainment, Inc. was founded in 1959 and is headquartered in Orlando, Florida.

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