Churchill Downs (NASDAQ:CHDN – Get Free Report) and DouYu International (NASDAQ:DOYU – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Risk and Volatility
Churchill Downs has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Profitability
This table compares Churchill Downs and DouYu International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Churchill Downs | 13.99% | 42.54% | 6.11% |
| DouYu International | -4.74% | -1.57% | -1.07% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Churchill Downs | $2.73 billion | 2.92 | $426.80 million | $5.50 | 20.84 |
| DouYu International | $585.10 million | 0.36 | -$42.03 million | ($0.88) | -7.98 |
Churchill Downs has higher revenue and earnings than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Churchill Downs and DouYu International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Churchill Downs | 0 | 1 | 9 | 1 | 3.00 |
| DouYu International | 1 | 3 | 0 | 0 | 1.75 |
Churchill Downs currently has a consensus price target of $133.30, suggesting a potential upside of 16.31%. DouYu International has a consensus price target of $7.00, suggesting a potential downside of 0.28%. Given Churchill Downs’ stronger consensus rating and higher possible upside, equities analysts plainly believe Churchill Downs is more favorable than DouYu International.
Insider and Institutional Ownership
82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 5.3% of Churchill Downs shares are held by company insiders. Comparatively, 17.3% of DouYu International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Churchill Downs beats DouYu International on 13 of the 14 factors compared between the two stocks.
About Churchill Downs
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.
About DouYu International
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.
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