Dover Motorsports (NYSE: DVD) and Speedway Motorsports (NYSE:TRK) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitabiliy, risk and analyst recommendations.

Dividends

Dover Motorsports pays an annual dividend of $0.05 per share and has a dividend yield of 2.4%. Speedway Motorsports pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Dover Motorsports pays out 50.0% of its earnings in the form of a dividend. Speedway Motorsports pays out 62.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

25.8% of Dover Motorsports shares are owned by institutional investors. Comparatively, 21.7% of Speedway Motorsports shares are owned by institutional investors. 50.0% of Dover Motorsports shares are owned by company insiders. Comparatively, 72.0% of Speedway Motorsports shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Dover Motorsports and Speedway Motorsports’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dover Motorsports $46.18 million 1.61 $10.46 million $0.10 20.50
Speedway Motorsports $512.87 million 1.75 $125.73 million $0.96 22.82

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

Volatility and Risk

Dover Motorsports has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Speedway Motorsports has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Dover Motorsports and Speedway Motorsports, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Motorsports 0 0 1 0 3.00
Speedway Motorsports 0 1 0 0 2.00

Profitability

This table compares Dover Motorsports and Speedway Motorsports’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover Motorsports 8.39% 7.96% 4.99%
Speedway Motorsports 7.66% 5.33% 2.83%

Summary

Speedway Motorsports beats Dover Motorsports on 8 of the 15 factors compared between the two stocks.

About Dover Motorsports

Dover Motorsports, Inc. is a marketer and promoter of motorsports entertainment in the United States. The Company, through its subsidiaries, owns and operates Dover International Speedway in Dover, Delaware, and Nashville Superspeedway near Nashville, Tennessee. The Dover International Speedway is located in Dover, Delaware, on approximately 770 acres of land. The Nashville Superspeedway is a motorsports complex located on approximately 1,400 acres of land in Wilson County and Rutherford County, Tennessee. The Company promotes approximately six National Association for Stock Car Auto Racing (NASCAR)-sanctioned events at the Dover International Speedway, including two races in the NASCAR Sprint Cup Series professional stock car racing circuit, two races in the NASCAR XFINITY Series racing circuit, one race in the NASCAR Camping World Truck Series racing circuit and one race in the NASCAR K&N Pro Series East racing circuit.

About Speedway Motorsports

Speedway Motorsports, Inc. (SMI), through its operating subsidiaries, is a promoter, marketer and sponsor of motorsports activities in the United States. The Company’s operations consist of promoting, marketing and sponsoring motorsports racing events, merchandising and other related activities conducted at its various speedway facilities located in the United States. Its segments include motorsports event related and all other. Its motorsports event related segment consists of National Association for Stock Car Auto Racing, Inc. (NASCAR) broadcasting and event motorsports merchandising activities. Its all other operations consist of SMIP subsidiary non-event motorsports and non-motorsports merchandising, US Legend Cars International subsidiary (Legend Cars) non-event merchandising and sanctioning body activities, Oil-Chem micro-lubricant activities, Texas Motor Speedway (TMS) natural gas mineral rights lease and related revenues, and office rentals at certain Company speedways.

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