Head to Head Analysis: PENN Entertainment (NASDAQ:PENN) & Serve Robotics (NASDAQ:SERV)

PENN Entertainment (NASDAQ:PENN) and Serve Robotics (NASDAQ:SERV) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares PENN Entertainment and Serve Robotics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PENN Entertainment	$6.96 billion	0.28	-$843.10 million	($6.36)	-2.28
Serve Robotics	$2.65 million	112.56	-$101.36 million	($2.45)	-1.40

Serve Robotics has lower revenue, but higher earnings than PENN Entertainment. PENN Entertainment is trading at a lower price-to-earnings ratio than Serve Robotics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PENN Entertainment and Serve Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PENN Entertainment	-12.66%	2.93%	0.39%
Serve Robotics	-2,315.80%	-55.34%	-52.06%

Volatility & Risk

PENN Entertainment has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Serve Robotics has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for PENN Entertainment and Serve Robotics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PENN Entertainment	1	5	14	1	2.71
Serve Robotics	1	1	4	1	2.71

PENN Entertainment currently has a consensus price target of $24.00, indicating a potential upside of 65.29%. Serve Robotics has a consensus price target of $14.77, indicating a potential upside of 329.26%. Given Serve Robotics’ higher possible upside, analysts clearly believe Serve Robotics is more favorable than PENN Entertainment.

Institutional and Insider Ownership

91.7% of PENN Entertainment shares are held by institutional investors. 3.2% of PENN Entertainment shares are held by insiders. Comparatively, 5.0% of Serve Robotics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

PENN Entertainment beats Serve Robotics on 7 of the 13 factors compared between the two stocks.

About PENN Entertainment

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

About Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.