Churchill Downs (NASDAQ:CHDN – Get Free Report) and Bragg Gaming Group (NASDAQ:BRAG – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Profitability
This table compares Churchill Downs and Bragg Gaming Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Churchill Downs | 13.21% | 43.50% | 6.10% |
| Bragg Gaming Group | -7.59% | -12.52% | -8.12% |
Earnings and Valuation
This table compares Churchill Downs and Bragg Gaming Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Churchill Downs | $2.93 billion | 2.10 | $383.00 million | $5.40 | 16.32 |
| Bragg Gaming Group | $119.98 million | 0.45 | -$9.18 million | ($0.37) | -5.81 |
Churchill Downs has higher revenue and earnings than Bragg Gaming Group. Bragg Gaming Group is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Churchill Downs has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Bragg Gaming Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Institutional and Insider Ownership
82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 4.0% of Bragg Gaming Group shares are held by institutional investors. 5.9% of Churchill Downs shares are held by insiders. Comparatively, 26.4% of Bragg Gaming Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Churchill Downs and Bragg Gaming Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Churchill Downs | 1 | 0 | 11 | 0 | 2.83 |
| Bragg Gaming Group | 1 | 4 | 0 | 0 | 1.80 |
Churchill Downs currently has a consensus price target of $139.00, suggesting a potential upside of 57.72%. Bragg Gaming Group has a consensus price target of $5.00, suggesting a potential upside of 132.56%. Given Bragg Gaming Group’s higher probable upside, analysts clearly believe Bragg Gaming Group is more favorable than Churchill Downs.
Summary
Churchill Downs beats Bragg Gaming Group on 11 of the 14 factors compared between the two stocks.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
About Bragg Gaming Group
Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
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