Churchill Downs (NASDAQ:CHDN) and Canterbury Park (NASDAQ:CPHC) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Churchill Downs and Canterbury Park, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Churchill Downs 0 2 0 0 2.00
Canterbury Park 0 0 0 0 N/A

Churchill Downs presently has a consensus price target of $302.50, suggesting a potential upside of 14.60%. Given Churchill Downs’ higher possible upside, equities analysts plainly believe Churchill Downs is more favorable than Canterbury Park.

Dividends

Churchill Downs pays an annual dividend of $1.52 per share and has a dividend yield of 0.6%. Canterbury Park pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Churchill Downs pays out 25.9% of its earnings in the form of a dividend. Churchill Downs has raised its dividend for 6 consecutive years.

Risk and Volatility

Churchill Downs has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Canterbury Park has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Churchill Downs 39.18% 30.33% 8.03%
Canterbury Park 8.90% 9.32% 6.83%

Insider and Institutional Ownership

71.3% of Churchill Downs shares are held by institutional investors. Comparatively, 24.4% of Canterbury Park shares are held by institutional investors. 13.8% of Churchill Downs shares are held by company insiders. Comparatively, 47.3% of Canterbury Park shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Churchill Downs and Canterbury Park’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Churchill Downs $882.60 million 4.06 $140.50 million $5.88 44.89
Canterbury Park $56.95 million 1.19 $4.09 million N/A N/A

Churchill Downs has higher revenue and earnings than Canterbury Park.

Summary

Churchill Downs beats Canterbury Park on 11 of the 14 factors compared between the two stocks.

Churchill Downs Company Profile

Churchill Downs Incorporated operates as a racing, gaming, and online entertainment company in the United States. It operates through Racing, Casinos, TwinSpires, and Other Investments segments. The company operates 4 racetracks, including Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 11 off-track betting (OTB) facilities in Illinois; Fair Grounds Race Course in New Orleans along with 12 OTBs in Louisiana; and Calder Race Course in Miami Gardens, Florida. It also operates five casinos, which provides brick-and-mortar real-money casino gaming services with approximately 10,000 gaming positions; and operates 3 hotels. In addition, the company through TwinSpires.com operates mobile and online wagering business; and a platform for betting on horseracing, as well as offers streaming video of live horse races, replays, and an assortment of racing information. Further, it offers reports, statistical information, handicapping information, pedigrees, and other data for the thoroughbred horse industry through Brisnet.com and TwinSpires.com. Additionally, the company manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses; and provides totalisator and Internet-based interactive gaming services. Churchill Downs Incorporated was founded in 1928 and is headquartered in Louisville, Kentucky.

Canterbury Park Company Profile

Canterbury Park Holding Corporation hosts pari-mutuel wagering on horse races and unbanked card games at its Canterbury park racetrack and card casino facility in Shakopee, Minnesota. The company operates through four segments: Horse Racing, Card Casino, Food and Beverage, and Development. The Horse Racing segment operates year-round simulcasting of horse races and wagering on live thoroughbred; and quarter horse races on a seasonal basis. The Card Casino segment offers unbanked card games, such as poker and table games. The Food and Beverage segment operates concession stands, restaurants and buffets, bars, and other food venues; and café style restaurants and full service bars within the Card Casino and simulcast area. This segment also provides lounge services; buffet restaurant; various concession style food and beverages; and catering and events services. The Development segment engages in real estate development compatible with racetrack operations; and various development opportunities, such as office, restaurants, hotel, entertainment and retail operations. It is also involved in related services and activities, such as parking, advertising signage, publication sales, and other entertainment events and activities. The company was founded in 1994 and is based in Shakopee, Minnesota.

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