Stars Group (TSG) vs. Golden Entertainment (GDEN) Head-To-Head Comparison

Golden Entertainment (NASDAQ:GDEN) and Stars Group (NASDAQ:TSG) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Volatility & Risk

Golden Entertainment has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Stars Group has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Golden Entertainment and Stars Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golden Entertainment 0 0 3 0 3.00
Stars Group 0 1 6 0 2.86

Golden Entertainment presently has a consensus price target of $24.67, indicating a potential upside of 54.84%. Stars Group has a consensus price target of $26.32, indicating a potential upside of 38.25%. Given Golden Entertainment’s stronger consensus rating and higher possible upside, research analysts clearly believe Golden Entertainment is more favorable than Stars Group.

Insider and Institutional Ownership

65.9% of Golden Entertainment shares are held by institutional investors. Comparatively, 61.4% of Stars Group shares are held by institutional investors. 33.8% of Golden Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Golden Entertainment and Stars Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golden Entertainment $851.79 million 0.52 -$20.91 million ($0.53) -30.06
Stars Group $2.03 billion 2.56 -$102.45 million $2.19 8.69

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

Profitability

This table compares Golden Entertainment and Stars Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golden Entertainment -2.46% -5.80% -1.45%
Stars Group -4.99% 16.48% 6.08%

Summary

Stars Group beats Golden Entertainment on 8 of the 14 factors compared between the two stocks.

Golden Entertainment Company Profile

Golden Entertainment, Inc., together with its subsidiaries, focuses on distributed gaming, and resort casino operations in the United States. The Distributed Gaming segment is involved in the installation, maintenance, and operation of slots and amusement devices in non-casino locations, such as grocery stores, convenience stores, restaurants, bars, taverns, and liquor stores; and operation of branded taverns targeting local patrons primarily in the greater Las Vegas, Nevada metropolitan area. The Casinos segment owns and operates 8 resort casino properties, including The Stratosphere that offers 2,430 hotel rooms, 748 slots, 42 table games, a race and sports book, 15 restaurants, 2 rooftop pools, a fitness center, and retail shops and entertainment facilities; Arizona Charlie's Decatur with 260 hotel rooms, 1,037 slots, 7 table games, race and sports books, 6 restaurants, and a 300 seat bingo parlor; and Arizona Charlie's Boulder with 300 hotel rooms, 839 slots, 7 table games, race and sports books, 4 restaurants, and a 450-seat bingo parlor, as well as recreational vehicle park (RV) with 220 RV hook-up sites in Las Vegas, Nevada. This segments also operates the Aquarius with 1,900 hotel rooms, 1,232 slots, 33 table games, and 10 restaurants in Laughlin, Nevada; Pahrump casinos with 419 slots, 8 table games, a race and sports book, a 200-seat bingo facility, and a bowling center, as well as 70 hotel rooms; Gold Town Casino with 226 slots and a 100-seat bingo facility; and Lakeside Casino & RV Park with 188 slots and 160 RV hook-up sites in Pahrump, Nevada; and Rocky Gap with 665 slots, 17 table games, 2 casino bars, 3 restaurants, a spa, and the Jack Nicklaus signature golf course, as well as 200 hotel rooms and an event and conference center in Flintstone, Maryland. The company was formerly known as Lakes Entertainment, Inc. and changed its name to Golden Entertainment, Inc. in July 2015. The company was founded in 1998 and is headquartered in Las Vegas, Nevada.

Stars Group Company Profile

The Stars Group Inc. engages in online gaming and betting businesses primarily in Europe, Australia, and the Americas. It owns and operates gaming and related interactive entertainment businesses, such as online real-money poker, casino and betting, play-money poker, and casino and sports prediction games, which are delivered through mobile, Web, and desktop applications. The company provides its products under various owned or licensed gaming and related consumer businesses and brands, including PokerStars, PokerStars Casino, BetStars, Full Tilt, BetEasy, Sky Bet, Sky Vegas, Sky Casino, Sky Bingo, Sky Poker, and Oddschecker, as well as live poker tour and events brands, such as PokerStars Players No Limit Hold'em Championship, European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker Tour, PokerStars Festival, and PokerStars MEGASTACK. The company was formerly known as Amaya, Inc. and changed its name to The Stars Group Inc. in August 2017. The Stars Group Inc. was founded in 2004 and is headquartered in Toronto, Canada.

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