Contrasting Everi (EVRI) and SeaWorld Entertainment (NYSE:SEAS)

Everi (NYSE:EVRI) and SeaWorld Entertainment (NYSE:SEAS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

93.5% of Everi shares are held by institutional investors. Comparatively, 84.5% of SeaWorld Entertainment shares are held by institutional investors. 6.0% of Everi shares are held by company insiders. Comparatively, 1.2% of SeaWorld Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Everi and SeaWorld Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi 0 0 3 1 3.25
SeaWorld Entertainment 1 1 7 0 2.67

Everi presently has a consensus price target of $10.13, suggesting a potential downside of 0.88%. SeaWorld Entertainment has a consensus price target of $32.46, suggesting a potential upside of 24.74%. Given SeaWorld Entertainment’s higher possible upside, analysts clearly believe SeaWorld Entertainment is more favorable than Everi.

Volatility & Risk

Everi has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, SeaWorld Entertainment has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Earnings & Valuation

This table compares Everi and SeaWorld Entertainment’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everi $469.52 million 1.55 $12.36 million $0.10 102.20
SeaWorld Entertainment $1.37 billion 1.60 $44.79 million $1.02 25.51

SeaWorld Entertainment has higher revenue and earnings than Everi. SeaWorld Entertainment is trading at a lower price-to-earnings ratio than Everi, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Everi and SeaWorld Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi 2.63% -6.27% 0.49%
SeaWorld Entertainment 3.26% 28.25% 3.74%

Summary

SeaWorld Entertainment beats Everi on 9 of the 15 factors compared between the two stocks.

About Everi

Everi Holdings Inc. provides technology solutions for the casino gaming industry in the United States, Europe, Canada, the Caribbean, Central America, and Asia. The company operates in two segments, Games and FinTech. It offers gaming products, such as classic mechanical reel games, video reel games, core HDX, Empire MPX and the Texan HDX, wide area progressive games, and slot tournament systems; and sells player terminals, licenses, back office systems, and other related equipment. The company also provides Cash access services; Casino Cash Plus 3-in-1 ATM, a cash-dispensing machine that enables ATM cash withdrawals, POS debit card cash access transactions, and credit card cash access transactions; check verification and warranty services; CashClub that provides gaming establishments with a single dashboard interface to streamline credit and debit card cash access transaction processing and check warranty transactions; fully integrated kiosks that provide multiple functions to the casino floor; and other integrated kiosk solutions. In addition, it offers Everi Compliance, a suite of compliance software to assist with anti-money laundering regulations; Central Credit, a gaming patron credit bureau service; non-ATM terminals that perform authorizations for credit card cash access and POS debit card transactions; database services; and an online payment processing solution for gaming operators in states that offer intra-state, and Internet-based gaming and lottery activities. The company was formerly known as Global Cash Access Holdings, Inc. and changed its name to Everi Holdings Inc. in August 2015. Everi Holdings Inc. was founded in 1998 and is headquartered in Las Vegas, Nevada.

About SeaWorld Entertainment

SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. The company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, as well as Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. It also operates water park attractions in Orlando, Florida; San Antonio, Texas; San Diego, California; Tampa, Florida; and Williamsburg, Virginia. In addition, the company operates a reservations-only theme park in Orlando, Florida and a seasonal park in Langhorne, Pennsylvania. It operates a portfolio of 12 destination and regional theme parks. The company was formerly known as SW Holdco, Inc. and changed its name to SeaWorld Entertainment, Inc. in December 2012. SeaWorld Entertainment, Inc. was founded in 1959 and is headquartered in Orlando, Florida.

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