Reviewing Archon (OTCMKTS:ARHN) & Bally’s (NYSE:BALY)

Archon (OTCMKTS:ARHN) and Bally’s (NYSE:BALY) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Archon and Bally’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Archon	0	0	0	0	0.00
Bally’s	2	3	0	0	1.60

Bally’s has a consensus price target of $12.75, suggesting a potential downside of 7.00%. Given Bally’s’ stronger consensus rating and higher probable upside, analysts clearly believe Bally’s is more favorable than Archon.

Risk & Volatility

Archon has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, Bally’s has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Earnings and Valuation

This table compares Archon and Bally’s”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Archon	N/A	N/A	N/A	N/A	N/A
Bally’s	$2.66 billion	0.25	-$701.10 million	($8.15)	-1.68

Archon has higher earnings, but lower revenue than Bally’s.

Profitability

This table compares Archon and Bally’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Archon	N/A	N/A	N/A
Bally’s	-29.98%	-56.76%	-9.16%

Insider and Institutional Ownership

70.4% of Bally’s shares are held by institutional investors. 80.0% of Archon shares are held by company insiders. Comparatively, 69.3% of Bally’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Bally’s beats Archon on 5 of the 9 factors compared between the two stocks.

About Archon

Archon Corporation, through its subsidiary, Pioneer Hotel Inc., engages in the ownership, management, and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada that consists of a casino. The company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties that include commercial office space in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.