Critical Survey: Codere Online Luxembourg (NASDAQ:CDRO) & SJM (OTCMKTS:SJMHF)

SJM (OTCMKTS:SJMHF) and Codere Online Luxembourg (NASDAQ:CDRO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares SJM and Codere Online Luxembourg”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SJM	$3.69 billion	0.62	$410,000.00	N/A	N/A
Codere Online Luxembourg	$217.20 million	1.50	$4.23 million	N/A	N/A

Codere Online Luxembourg has lower revenue, but higher earnings than SJM.

Profitability

This table compares SJM and Codere Online Luxembourg’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SJM	N/A	N/A	N/A
Codere Online Luxembourg	N/A	N/A	N/A

Risk & Volatility

SJM has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Codere Online Luxembourg has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Insider and Institutional Ownership

10.3% of Codere Online Luxembourg shares are held by institutional investors. 1.2% of Codere Online Luxembourg shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for SJM and Codere Online Luxembourg, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SJM	0	2	0	0	2.00
Codere Online Luxembourg	1	1	1	0	2.00

Codere Online Luxembourg has a consensus target price of $9.00, indicating a potential upside of 25.70%. Given Codere Online Luxembourg’s higher probable upside, analysts clearly believe Codere Online Luxembourg is more favorable than SJM.

Summary

Codere Online Luxembourg beats SJM on 6 of the 8 factors compared between the two stocks.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

About Codere Online Luxembourg

Codere Online Luxembourg, S.A. operates as an online casino gaming and sports betting company. It also offers online casino wagering products and services, as well as online gambling and other online services. The company offers its products under the Codere and Greenplay brand names. It primarily operates in Spain, Italy, Mexico, Colombia, the United Kingdom, Germany, South Africa, Austria, Malta, Panama, and Argentina. The company is based in Luxembourg, Luxembourg.