Dover Downs Gaming & Entertainment (NYSE:DDE) and Dover Motorsports (NYSE:DVD) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

29.4% of Dover Downs Gaming & Entertainment shares are held by institutional investors. Comparatively, 23.4% of Dover Motorsports shares are held by institutional investors. 43.4% of Dover Downs Gaming & Entertainment shares are held by insiders. Comparatively, 50.3% of Dover Motorsports shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Dover Downs Gaming & Entertainment and Dover Motorsports’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover Downs Gaming & Entertainment -0.66% -0.44% -0.32%
Dover Motorsports 23.47% 6.60% 4.96%

Earnings & Valuation

This table compares Dover Downs Gaming & Entertainment and Dover Motorsports’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dover Downs Gaming & Entertainment $176.92 million 0.47 -$1.06 million N/A N/A
Dover Motorsports $46.74 million 1.54 $8.42 million $0.10 19.70

Dover Motorsports has lower revenue, but higher earnings than Dover Downs Gaming & Entertainment.

Analyst Ratings

This is a summary of current recommendations and price targets for Dover Downs Gaming & Entertainment and Dover Motorsports, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Downs Gaming & Entertainment 0 1 0 0 2.00
Dover Motorsports 0 0 1 0 3.00

Dover Downs Gaming & Entertainment currently has a consensus target price of $110.00, suggesting a potential upside of 4,317.67%. Given Dover Downs Gaming & Entertainment’s higher possible upside, equities research analysts plainly believe Dover Downs Gaming & Entertainment is more favorable than Dover Motorsports.

Dividends

Dover Motorsports pays an annual dividend of $0.08 per share and has a dividend yield of 4.1%. Dover Downs Gaming & Entertainment does not pay a dividend. Dover Motorsports pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Dover Downs Gaming & Entertainment has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Dover Motorsports has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Summary

Dover Motorsports beats Dover Downs Gaming & Entertainment on 9 of the 14 factors compared between the two stocks.

About Dover Downs Gaming & Entertainment

Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment resort destination in the United States. The company operates Dover Downs Casino, a 165,000-square foot casino complex with table games, including craps, roulette, and card games; slot machine games; multi-player electronic table games; a poker room; and a race and sports book operation, as well as bars, restaurants, and six retail outlets. It also operates the Dover Downs Hotel and Conference Center, a 500 room AAA Four Diamond hotel with fine dining restaurant, spa/salon, conference, banquet, ballroom, and concert hall facilities; and Dover Downs Raceway, a harness racing track with pari-mutuel wagering on live and simulcast horse races. As of December 31, 2017, the company operated approximately 2,300 slot machines; 40 table games; and 12 poker tables. Dover Downs Gaming & Entertainment, Inc. was founded in 1969 and is based in Dover, Delaware.

About Dover Motorsports

Dover Motorsports, Inc. markets and promotes motorsports entertainment in the United States. It owns and operates Dover International Speedway in Dover, Delaware; and Nashville Superspeedway near Nashville, Tennessee. The company was formerly known as Dover Downs Entertainment, Inc. Dover Motorsports, Inc. was founded in 1969 and is based in Dover, Delaware.

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