Comparing Chagee (NASDAQ:CHA) & Boyd Gaming (NYSE:BYD)

Chagee (NASDAQ:CHA) and Boyd Gaming (NYSE:BYD) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Dividends

Chagee pays an annual dividend of $0.87 per share and has a dividend yield of 7.5%. Boyd Gaming pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Chagee pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boyd Gaming pays out 3.5% of its earnings in the form of a dividend. Boyd Gaming has increased its dividend for 4 consecutive years.

Profitability

This table compares Chagee and Boyd Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chagee	10.23%	16.43%	11.39%
Boyd Gaming	44.34%	22.52%	8.80%

Volatility & Risk

Chagee has a beta of 1.6, suggesting that its stock price is 60% 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.

Insider & Institutional Ownership

76.8% of Boyd Gaming shares are owned by institutional investors. 22.8% of Boyd Gaming shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Chagee and Boyd Gaming”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chagee	$1.85 billion	1.16	$167.47 million	$1.01	11.54
Boyd Gaming	$4.10 billion	1.28	$1.84 billion	$22.72	3.17

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

Analyst Ratings

This is a breakdown of recent recommendations for Chagee and Boyd Gaming, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chagee	1	4	2	0	2.14
Boyd Gaming	0	11	4	1	2.38

Chagee presently has a consensus target price of $13.82, indicating a potential upside of 18.52%. Boyd Gaming has a consensus target price of $94.69, indicating a potential upside of 31.42%. Given Boyd Gaming’s stronger consensus rating and higher possible upside, analysts clearly believe Boyd Gaming is more favorable than Chagee.

Summary

Boyd Gaming beats Chagee on 14 of the 18 factors compared between the two stocks.

About Chagee

Our Mission With every cup of our tea, we aspire to foster a global connection of people and cultures. Our Vision To modernize the tea-drinking experience through technology and innovation. Our Core Values “Customer First” is the foundational philosophy of how we make decisions and run our business. “Caring for Partners” is the core value that defines how we interact with consumers, franchise partners, suppliers, and employees. “Quality, Health, and Convenience” is the guiding principle of how we make our products. CHAGEE is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks. Its creation, in 2017, was inspired by how international coffee chains have made coffee drinking both a worldwide lifestyle and a social concept since the 1970s. This success has made us believe that tea drinking needs to be transformed too — and led us to use the power of technology and brand to make tea drinking a modern-day experience that connects people and cultures around the world. Today, nearly eight years after our inception and with our relentless passion for technology and pursuit of innovation, we stand out as China’s largest, fastest-growing, and most popular premium freshly-made tea drinks brand, according to iResearch: • As of December 31, 2024, our network comprised 6,440 teahouses, including 6,284 located in China. This scale represents the largest store network among all premium freshly-made tea drinks brands in China. • In 2023 and 2024, our total GMV generated in China and overseas reached RMB10.8 billion and RMB29.5 billion, respectively. As measured by GMV generated within China, we recorded the fastest growth from 2022 to 2024 among all freshly-made tea drinks brands with over 1,000 stores in China. • We have ranked the 1st on China’s social influence index among all freshly-made tea drinks brands in China since October 2023, according to the Social Touch Search Engine. — Universally Appealing Core Menu At CHAGEE, we persistently explore and create tea drink recipes that embody purity and a timeless appeal to the diverse palates of a broad spectrum of consumers. This strategic focus anchors the development of our simple core menu. We use advanced extraction technology to accentuate the pure taste of tea and enhance its depth of flavor through meticulous blending. This technique results in a differentiated, delicious taste of freshness and healthiness that has the ability to transcend time and cultures, captivating consumers worldwide. In 2022, 2023 and 2024, approximately 79%, 87% and 91% of CHAGEE’s GMV generated within China, respectively, were attributed to our signature tea latte products, with approximately 44%, 57% and 61% of GMV generated within China derived from our top three best-selling tea lattes. Focusing on a simple core menu also makes it easier for us to ensure product quality, consistency, and convenience through more concentrated, streamlined, and efficient supply chain management as well as highly automated tea preparation processes. This ultimately leads to improved operational efficiency and service quality of our expansive teahouse network. Modernity Powered by Technology We are committed to operational efficiency and excellence, which is underpinned by our cutting-edge “tea tech” initiatives. Using digital and automation technologies, we empower every crucial aspect of our operations, from product development to supply chain management, and from consumer engagement to storefront operations. We collaborate creatively with our supply chain partners to co-develop automated tea-making machines, heralding the modernization of the century-old tea industry. The application of customized equipment allows our in-store crew to make every cup of CHAGEE drink with consistent quality and taste. Across our teahouses in China and overseas, this level of automation allows us to ensure consistent quality control, enhance store productivity, reduce consumer wait times, and ultimately, elevate the overall tea-drinking experience. Our strength in digitalization allows us to achieve what we define to be the “Five Things Online” — drinks preparation, consumer and partner relationships, supply chain, store lifecycle management, and payments. Essentially, this approach enables us and our franchise partners to run teahouses online, with centralized operations, automated replenishment, and fully integrated management of both franchised and company-owned teahouses. The resulting data insights are organically and intelligently fed into digitalized operations, creating a positive feedback loop that fosters more efficient and closer-knit collaborations with our franchise partners. The seamless integration of these technologies enables our franchise partners to make better tea drinks for consumers and operate their teahouses smartly and more efficiently. It also allows us and our franchise partners to focus more on consumer services to deliver a compelling experience. Effectively Managed Teahouse Network As of December 31, 2024, our CHAGEE brand encompasses a vast, growing network of 6,440 teahouses, including 6,284 teahouses covering 32 out of 34 province-level divisions across China and 156 teahouses overseas. Of our extensive teahouse network, 6,271 are franchised and 169 are company-owned. We directly manage a total of 398 teahouses, including all of our company-owned teahouses and 229 franchised teahouses. We take pride in our strong ability to manage and scale a franchise network both across China and in a growing number of overseas markets. This ability is rooted in our “managed franchise model” that focuses on effective, centralized management of our franchise network in accordance with our uniform standards in product quality, supply chain management, and consumer service excellence. Our ability to effectively manage our growing teahouse network is manifest in our strong operating results: • Number of teahouses. The number of our teahouses increased by 83.4% from 3,511 as of December 31, 2023 to 6,440 as of December 31, 2024. • GMV. Our total GMV generated in China and overseas increased by 734.3% from RMB1,293.7 million in 2022 to RMB10,792.8 million in 2023, and further increased by 172.9% to RMB29,457.7 million in 2024. As we rapidly scale our operations, our teahouses continue to deliver strong performance. Our average number of cups sold per teahouse per month in China increased from 8,981 in 2022 to 25,099 in 2024. The average monthly GMV of our teahouses in China increased by 188.2% from RMB177.5 thousand in 2022 to RMB511.7 thousand in 2024. Our principal executive offices are located in Shanghai, People’s Republic of China.

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.