Marcus (NYSE:MCS – Get Free Report) and Caesars Entertainment (NASDAQ:CZR – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.
Volatility and Risk
Marcus has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500.
Profitability
This table compares Marcus and Caesars Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Marcus | 1.02% | 1.71% | 0.76% |
| Caesars Entertainment | -2.12% | -5.76% | -0.75% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marcus | 1 | 1 | 3 | 1 | 2.67 |
| Caesars Entertainment | 2 | 5 | 12 | 1 | 2.60 |
Marcus currently has a consensus price target of $23.50, suggesting a potential upside of 54.10%. Caesars Entertainment has a consensus price target of $34.61, suggesting a potential upside of 60.39%. Given Caesars Entertainment’s higher possible upside, analysts plainly believe Caesars Entertainment is more favorable than Marcus.
Insider and Institutional Ownership
81.6% of Marcus shares are owned by institutional investors. Comparatively, 91.8% of Caesars Entertainment shares are owned by institutional investors. 15.8% of Marcus shares are owned by company insiders. Comparatively, 1.0% of Caesars Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Marcus and Caesars Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marcus | $735.56 million | 0.64 | -$7.79 million | $0.24 | 63.54 |
| Caesars Entertainment | $11.25 billion | 0.39 | -$278.00 million | ($1.15) | -18.77 |
Marcus has higher earnings, but lower revenue than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.
Summary
Marcus beats Caesars Entertainment on 9 of the 14 factors compared between the two stocks.
About Marcus
The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.
About Caesars Entertainment
Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 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 retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; 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.
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