Churchill Downs (NASDAQ:CHDN) & Galaxy Gaming (OTCMKTS:GLXZ) Head to Head Survey

Churchill Downs (NASDAQ:CHDN) and Galaxy Gaming (OTCMKTS:GLXZ) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Profitability

This table compares Churchill Downs and Galaxy Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	13.09%	43.26%	6.06%
Galaxy Gaming	-3.02%	N/A	-2.99%

Earnings and Valuation

This table compares Churchill Downs and Galaxy Gaming”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.93 billion	2.00	$383.00 million	$5.26	15.98
Galaxy Gaming	$31.74 million	1.47	-$2.63 million	($0.03)	-61.33

Churchill Downs has higher revenue and earnings than Galaxy Gaming. Galaxy Gaming is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Churchill Downs has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are held by institutional investors. 5.3% of Churchill Downs shares are held by insiders. Comparatively, 21.9% of Galaxy Gaming shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Churchill Downs and Galaxy Gaming, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	1	11	0	2.92
Galaxy Gaming	0	0	0	0	0.00

Churchill Downs presently has a consensus price target of $135.00, suggesting a potential upside of 60.56%. Given Churchill Downs’ stronger consensus rating and higher possible upside, analysts clearly believe Churchill Downs is more favorable than Galaxy Gaming.

Summary

Churchill Downs beats Galaxy Gaming 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 Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.