Booking (NASDAQ:BKNG – Get Free Report) and Boyd Gaming (NYSE:BYD – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Risk and Volatility
Booking has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Boyd Gaming has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Profitability
This table compares Booking and Boyd Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Booking | 25.53% | -102.96% | 26.60% |
| Boyd Gaming | 44.34% | 22.52% | 8.80% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Booking | 0 | 8 | 27 | 2 | 2.84 |
| Boyd Gaming | 0 | 11 | 5 | 1 | 2.41 |
Booking currently has a consensus target price of $236.70, indicating a potential upside of 21.30%. Boyd Gaming has a consensus target price of $94.69, indicating a potential upside of 21.71%. Given Boyd Gaming’s higher possible upside, analysts clearly believe Boyd Gaming is more favorable than Booking.
Earnings & Valuation
This table compares Booking and Boyd Gaming”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Booking | $26.92 billion | 5.45 | $5.40 billion | $9.04 | 21.59 |
| Boyd Gaming | $4.09 billion | 1.38 | $1.84 billion | $22.72 | 3.42 |
Booking has higher revenue and earnings than Boyd Gaming. Boyd Gaming is trading at a lower price-to-earnings ratio than Booking, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.4% of Booking shares are owned by institutional investors. Comparatively, 76.8% of Boyd Gaming shares are owned by institutional investors. 0.2% of Booking shares are owned by company insiders. Comparatively, 22.8% of Boyd Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
Booking pays an annual dividend of $1.68 per share and has a dividend yield of 0.9%. Boyd Gaming pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Booking pays out 18.6% of its earnings in the form of a dividend. Boyd Gaming pays out 3.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Booking has raised its dividend for 1 consecutive years and Boyd Gaming has raised its dividend for 4 consecutive years. Boyd Gaming is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Booking beats Boyd Gaming on 10 of the 18 factors compared between the two stocks.
About Booking
Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).
About Boyd Gaming
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
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