Penn National Gaming (NASDAQ: PENN) and China Lodging Group (NASDAQ:HTHT) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
97.3% of Penn National Gaming shares are owned by institutional investors. Comparatively, 9.4% of China Lodging Group shares are owned by institutional investors. 10.6% of Penn National Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Penn National Gaming and China Lodging Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Penn National Gaming||$3.15 billion||0.91||$473.46 million||$8.98||3.49|
|China Lodging Group||$1.26 billion||11.14||$190.15 million||$0.65||73.85|
Penn National Gaming has higher revenue and earnings than China Lodging Group. Penn National Gaming is trading at a lower price-to-earnings ratio than China Lodging Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Penn National Gaming has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, China Lodging Group has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Penn National Gaming and China Lodging Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Penn National Gaming||0||3||8||0||2.73|
|China Lodging Group||0||0||5||0||3.00|
Penn National Gaming presently has a consensus price target of $33.70, indicating a potential upside of 7.63%. China Lodging Group has a consensus price target of $44.60, indicating a potential downside of 7.08%. Given Penn National Gaming’s higher possible upside, research analysts plainly believe Penn National Gaming is more favorable than China Lodging Group.
This table compares Penn National Gaming and China Lodging Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Penn National Gaming||17.04%||-92.84%||1.61%|
|China Lodging Group||13.89%||21.24%||7.74%|
Penn National Gaming beats China Lodging Group on 8 of the 14 factors compared between the two stocks.
About Penn National Gaming
Penn National Gaming, Inc. owns and manages gaming and racing facilities, and operates video gaming terminals with a focus on slot machine entertainment. The company operates through Northeast, South/West, and Midwest segments. As of December 31, 2017, it operated 27 facilities in 17 jurisdictions, including California, Florida, Illinois, Indiana, Kansas, Maine, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario, Canada. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
About China Lodging Group
China Lodging Group, Limited, together with its subsidiaries, develops and operates leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under the Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, Grand Mercure, Novotel, Mercure, Ibis Styles, and Ibis brand names for business and leisure travelers. As of December 31, 2017, it had 671 leased and owned hotels; 2,874 manachised hotels; and 201 franchised hotels in operation, as well as 37 leased and owned hotels, and 659 manachised and franchised hotels under development. China Lodging Group, Limited was incorporated in 2007 and is headquartered in Shanghai, the People's Republic of China.
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