Financial Review: Canterbury Park (CPHC) & Churchill Downs (CHDN)

Canterbury Park (NASDAQ:CPHC) and Churchill Downs (NASDAQ:CHDN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Valuation and Earnings

This table compares Canterbury Park and Churchill Downs’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canterbury Park $56.95 million 1.19 $4.09 million N/A N/A
Churchill Downs $882.60 million 3.75 $140.50 million $5.88 41.48

Churchill Downs has higher revenue and earnings than Canterbury Park.

Volatility and Risk

Canterbury Park has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Dividends

Canterbury Park pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Churchill Downs pays an annual dividend of $1.52 per share and has a dividend yield of 0.6%. Churchill Downs pays out 25.9% of its earnings in the form of a dividend. Churchill Downs has raised its dividend for 6 consecutive years.

Insider and Institutional Ownership

24.5% of Canterbury Park shares are owned by institutional investors. Comparatively, 69.8% of Churchill Downs shares are owned by institutional investors. 47.3% of Canterbury Park shares are owned by insiders. Comparatively, 13.8% of Churchill Downs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Canterbury Park and Churchill Downs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canterbury Park 7.84% 7.99% 5.75%
Churchill Downs 32.00% 27.68% 7.15%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Canterbury Park and Churchill Downs, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canterbury Park 0 0 0 0 N/A
Churchill Downs 0 2 0 0 2.00

Churchill Downs has a consensus target price of $307.50, indicating a potential upside of 26.08%. Given Churchill Downs’ higher possible upside, analysts clearly believe Churchill Downs is more favorable than Canterbury Park.

Summary

Churchill Downs beats Canterbury Park on 11 of the 14 factors compared between the two stocks.

Canterbury Park Company Profile

Canterbury Park Holding Corporation hosts pari-mutuel wagering on horse races and unbanked card games at its Canterbury park racetrack and card casino facility in Shakopee, Minnesota. The company operates through four segments: Horse Racing, Card Casino, Food and Beverage, and Development. The Horse Racing segment operates year-round simulcasting of horse races and wagering on live thoroughbred; and quarter horse races on a seasonal basis. The Card Casino segment offers unbanked card games, such as poker and table games. The Food and Beverage segment operates concession stands, restaurants and buffets, bars, and other food venues; and café style restaurants and full service bars within the Card Casino and simulcast area. This segment also provides lounge services; buffet restaurant; various concession style food and beverages; and catering and events services. The Development segment engages in real estate development compatible with racetrack operations; and various development opportunities, such as office, restaurants, hotel, entertainment and retail operations. It is also involved in related services and activities, such as parking, advertising signage, publication sales, and other entertainment events and activities. The company was founded in 1994 and is based in Shakopee, Minnesota.

Churchill Downs Company Profile

Churchill Downs Incorporated operates as a racing, gaming, and online entertainment company in the United States. It operates through Racing, Casinos, TwinSpires, and Other Investments segments. The company operates 4 racetracks, including Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 11 off-track betting (OTB) facilities in Illinois; Fair Grounds Race Course in New Orleans along with 12 OTBs in Louisiana; and Calder Race Course in Miami Gardens, Florida. It also operates five casinos, which provides brick-and-mortar real-money casino gaming services with approximately 10,000 gaming positions; and operates 3 hotels. In addition, the company through TwinSpires.com operates mobile and online wagering business; and a platform for betting on horseracing, as well as offers streaming video of live horse races, replays, and an assortment of racing information. Further, it offers reports, statistical information, handicapping information, pedigrees, and other data for the thoroughbred horse industry through Brisnet.com and TwinSpires.com. Additionally, the company manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses; and provides totalisator and Internet-based interactive gaming services. Churchill Downs Incorporated was founded in 1928 and is headquartered in Louisville, Kentucky.

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