Latitude 360 (OTCMKTS:LATX) versus Churchill Downs (NASDAQ:CHDN) Critical Analysis

Churchill Downs (NASDAQ:CHDN) and Latitude 360 (OTCMKTS:LATX) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Profitability

This table compares Churchill Downs and Latitude 360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	13.82%	42.16%	6.31%
Latitude 360	N/A	N/A	N/A

Valuation and Earnings

This table compares Churchill Downs and Latitude 360″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.93 billion	2.09	$383.00 million	$5.83	15.02
Latitude 360	N/A	N/A	N/A	N/A	N/A

Churchill Downs has higher revenue and earnings than Latitude 360.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Churchill Downs and Latitude 360, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	1	0	9	0	2.80
Latitude 360	0	0	0	0	0.00

Churchill Downs currently has a consensus target price of $136.88, indicating a potential upside of 56.30%. Given Churchill Downs’ stronger consensus rating and higher possible upside, equities analysts plainly believe Churchill Downs is more favorable than Latitude 360.

Insider and Institutional Ownership

82.6% of Churchill Downs shares are held by institutional investors. 5.9% of Churchill Downs shares are held by insiders. Comparatively, 24.5% of Latitude 360 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Churchill Downs beats Latitude 360 on 8 of the 9 factors compared between the two stocks.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.