Critical Analysis: Playa Hotels & Resorts (PLYA) versus Boyd Gaming (BYD)

Boyd Gaming (NYSE:BYD) and Playa Hotels & Resorts (NASDAQ:PLYA) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Earnings and Valuation

This table compares Boyd Gaming and Playa Hotels & Resorts’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boyd Gaming $2.38 billion 1.09 $189.19 million $1.03 22.40
Playa Hotels & Resorts $559.54 million 1.79 -$240,000.00 $0.38 20.16

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

Dividends

Boyd Gaming pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Playa Hotels & Resorts does not pay a dividend. Boyd Gaming pays out 23.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

72.4% of Boyd Gaming shares are held by institutional investors. Comparatively, 68.7% of Playa Hotels & Resorts shares are held by institutional investors. 28.9% of Boyd Gaming shares are held by company insiders. Comparatively, 3.7% of Playa Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Boyd Gaming and Playa Hotels & Resorts, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boyd Gaming 0 3 9 0 2.75
Playa Hotels & Resorts 0 2 2 0 2.50

Boyd Gaming currently has a consensus target price of $39.64, indicating a potential upside of 71.81%. Playa Hotels & Resorts has a consensus target price of $12.25, indicating a potential upside of 59.92%. Given Boyd Gaming’s stronger consensus rating and higher probable upside, equities analysts clearly believe Boyd Gaming is more favorable than Playa Hotels & Resorts.

Volatility and Risk

Boyd Gaming has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Playa Hotels & Resorts has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Profitability

This table compares Boyd Gaming and Playa Hotels & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boyd Gaming 7.19% 12.53% 2.86%
Playa Hotels & Resorts 3.64% 6.98% 2.64%

Summary

Boyd Gaming beats Playa Hotels & Resorts on 14 of the 16 factors compared between the two stocks.

About Boyd Gaming

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest and South. As of October 15, 2018, the company operated 29 gaming entertainment properties offering a total of 1.76 million square feet of casino space, approximately 38,000 gaming machines, 900 table games, 11,000 hotel rooms, and 320 food and beverage outlets located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. It also owns and operates a travel agency in Hawaii. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.

About Playa Hotels & Resorts

Playa Hotels & Resorts N.V. owns, operates, develops, and manages all-inclusive resorts in prime beachfront locations in various vacation destinations in Mexico and the Caribbean. The company owns, operates, and manages resorts under the Hyatt Ziva, Panama Jack, Dreams, Sanctuary, Hyatt Zilara, THE Royal, and Secrets brand names. As of September 17, 2018, it owned a portfolio consisting of 20 resorts comprising 7,769 rooms located in Mexico, the Dominican Republic, and Jamaica. Playa Hotels & Resorts N.V. is headquartered in Fairfax, Virginia.

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