Boyd Gaming (NYSE: PK) and Park Hotels & Resorts (NYSE:PK) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Boyd Gaming and Park Hotels & Resorts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boyd Gaming 0 3 8 0 2.73
Park Hotels & Resorts 2 5 4 0 2.18

Boyd Gaming presently has a consensus price target of $40.55, indicating a potential upside of 22.35%. Park Hotels & Resorts has a consensus price target of $30.94, indicating a potential downside of 7.21%. Given Boyd Gaming’s stronger consensus rating and higher probable upside, equities analysts plainly believe Boyd Gaming is more favorable than Park Hotels & Resorts.

Risk & Volatility

Boyd Gaming has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Institutional & Insider Ownership

72.5% of Boyd Gaming shares are held by institutional investors. 28.9% of Boyd Gaming shares are held by company insiders. Comparatively, 0.4% of Park Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Boyd Gaming pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Park Hotels & Resorts pays an annual dividend of $1.72 per share and has a dividend yield of 5.2%. Boyd Gaming pays out 23.3% of its earnings in the form of a dividend. Park Hotels & Resorts pays out 61.9% 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.

Profitability

This table compares Boyd Gaming and Park Hotels & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boyd Gaming 7.72% 12.73% 2.92%
Park Hotels & Resorts 19.08% 8.41% 5.15%

Earnings & Valuation

This table compares Boyd Gaming and Park Hotels & Resorts’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boyd Gaming $2.38 billion 1.56 $189.19 million $1.03 32.17
Park Hotels & Resorts $2.79 billion 2.40 $2.63 billion $2.78 11.99

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

Summary

Boyd Gaming beats Park Hotels & Resorts on 9 of the 16 factors compared between the two stocks.

About Boyd Gaming

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest and South. As of December 31, 2017, the company owned and operated 24 gaming entertainment properties offering a total of 1,358,856 square feet of casino space, 30,267 slot machines, 632 table games, and 9,372 hotel rooms located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, and Mississippi. It also owns and operates a travel agency in Hawaii. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.

About Park Hotels & Resorts

Park is a leading lodging REIT with a diverse portfolio of hotels and resorts with significant underlying real estate value. Park's portfolio consists of 54 premium-branded hotels and resorts with over 32,000 rooms, a majority of which are located in prime United States markets with high barriers to entry.

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