Reviewing Eldorado Resorts (NASDAQ:ERI) and Peak Resorts (NASDAQ:SKIS)

Eldorado Resorts (NASDAQ:ERI) and Peak Resorts (NASDAQ:SKIS) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Valuation & Earnings

This table compares Eldorado Resorts and Peak Resorts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Resorts $2.06 billion 1.60 $95.24 million $1.38 30.59
Peak Resorts $184.43 million 0.91 $8.92 million $0.45 24.40

Eldorado Resorts has higher revenue and earnings than Peak Resorts. Peak Resorts is trading at a lower price-to-earnings ratio than Eldorado Resorts, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.0% of Eldorado Resorts shares are owned by institutional investors. Comparatively, 41.3% of Peak Resorts shares are owned by institutional investors. 1.5% of Eldorado Resorts shares are owned by insiders. Comparatively, 13.9% of Peak Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Eldorado Resorts and Peak Resorts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Resorts 0 2 6 0 2.75
Peak Resorts 0 2 1 0 2.33

Eldorado Resorts presently has a consensus target price of $55.64, indicating a potential upside of 31.82%. Peak Resorts has a consensus target price of $8.00, indicating a potential downside of 27.14%. Given Eldorado Resorts’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Eldorado Resorts is more favorable than Peak Resorts.

Profitability

This table compares Eldorado Resorts and Peak Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eldorado Resorts 3.90% 9.47% 1.77%
Peak Resorts 0.59% 1.74% 0.29%

Dividends

Peak Resorts pays an annual dividend of $0.28 per share and has a dividend yield of 2.6%. Eldorado Resorts does not pay a dividend. Peak Resorts pays out 62.2% of its earnings in the form of a dividend.

Risk and Volatility

Eldorado Resorts has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Peak Resorts has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Summary

Eldorado Resorts beats Peak Resorts on 14 of the 16 factors compared between the two stocks.

Eldorado Resorts Company Profile

Eldorado Resorts, Inc. operates as a gaming and hospitality company in the United States. It owns and operates Eldorado Resort Casino Reno, a hotel, casino, and entertainment facility; Silver Legacy Resort Casino, a themed hotel and casino; Circus Circus Reno, a hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino. The company also operates Isle Casino Hotel—Black Hawk and Lady Luck Casino—Black Hawk land-based casinos; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based single-level casino; Isle Casino Waterloo, a single-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a gaming vessel; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg and Isle of Capri Casino Kansas City dockside casinos; Isle of Capri Casino Boonville, a single-level dockside casino; Isle Casino Cape Girardeau, a dockside casino, and pavilion and entertainment center; Lady Luck Casino Caruthersville, a riverboat casino; and Lady Luck Casino Nemacolin, a casino property. In addition, it operates Tropicana Casino and Resort, Atlantic City, a casino and resort; Tropicana Evansville, a casino hotel and entertainment complex; Lumière Place Casino, Tropicana Laughlin Hotel and Casino, MontBleu Casino Resort & Spa, and Grand Victoria Casino; Trop Casino Greenville, a landside gaming facility; Belle of Baton Rouge Casino & Hotel, a dockside riverboat; and Racelinebet.com. As of December 31, 2018, it owned 28 gaming facilities with approximately 30,000 slot machines and video lottery terminals; 800 table games; and 12,600 hotel rooms. The company was founded in 1973 and is based in Reno, Nevada.

Peak Resorts Company Profile

Peak Resorts, Inc., through its subsidiaries, owns, operates, and leases day and overnight drive ski resorts in the United States. Its resorts activities and amenities include skiing, snowboarding, terrain parks, tubing, dining, lodging, equipment rentals and sales, ski and snowboard instruction, zip lines, mountain coasters, mountain biking, hiking, and other summer activities. The company also offers non-winter attractions, such as golf, roller coasters, swimming, summer concerts, and zip rides. It operates 14 ski resorts primarily located in the Northeast and Midwest. Peak Resorts, Inc. was founded in 1997 and is based in Wildwood, Missouri.

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