Head to Head Analysis: Crown Resorts (OTCMKTS:CWLDF) and Caesars Entertainment (NASDAQ:CZR)

Caesars Entertainment (NASDAQ:CZR) and Crown Resorts (OTCMKTS:CWLDF) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

91.3% of Caesars Entertainment shares are held by institutional investors. 0.6% of Caesars Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Caesars Entertainment and Crown Resorts’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caesars Entertainment	$10.82 billion	1.05	-$899.00 million	$3.17	16.68
Crown Resorts	N/A	N/A	N/A	N/A	N/A

Crown Resorts has lower revenue, but higher earnings than Caesars Entertainment.

Profitability

This table compares Caesars Entertainment and Crown Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesars Entertainment	6.03%	5.71%	0.68%
Crown Resorts	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Caesars Entertainment and Crown Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesars Entertainment	1	3	6	0	2.50
Crown Resorts	0	0	0	0	N/A

Caesars Entertainment currently has a consensus price target of $66.75, indicating a potential upside of 26.25%. Given Caesars Entertainment’s higher possible upside, equities research analysts plainly believe Caesars Entertainment is more favorable than Crown Resorts.

Summary

Caesars Entertainment beats Crown Resorts on 8 of the 8 factors compared between the two stocks.

About Caesars Entertainment

Caesars Entertainment, Inc. operates as a gaming and hospitality company in the United States. The company owns, leases, or manages domestic properties in 16 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts sports wagering across 28 jurisdictions in North America, including mobile for sports betting and regulated online real money gaming in six jurisdictions in North America; retail and online gaming and sports betting; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

About Crown Resorts

Crown Resorts Limited operates in the entertainment industry primarily in Australia. It operates through four segments: Crown Melbourne, Crown Perth, Crown Aspinalls, and Wagering & Online. The company owns and operates two integrated resorts, including Crown Melbourne and Crown Perth. Its Crown Melbourne resort comprises 2,628 gaming machines and 540 gaming tables; the Crown Towers Melbourne hotel with 481 guest rooms, the Crown Metropol Melbourne hotel with 658 guest rooms, and the Crown Promenade Melbourne hotel with 465 guest rooms; a conference center; banqueting facilities; restaurants and bars; and designer brands and retail outlets. The company's Crown Perth resort includes the Crown Towers Perth hotel with 500 guest rooms; the Crown Metropol Perth hotel comprising 397 guest rooms; the Crown Promenade Perth hotel with 291 guest rooms; 2,500 gaming machines and 350 gaming tables; a 1,500-seat Crown Ballroom and 2,300-seat Crown Theatre; convention facilities; and restaurants and bars, and a resort. It also owns and operates the Crown Aspinalls, a casino in London; and engages in wagering and online social gaming activities. The company was formerly known as Crown Limited and changed its name to Crown Resorts Limited in October 2013. Crown Resorts Limited was incorporated in 2007 and is based in Southbank, Australia.