Head-To-Head Comparison: Eldorado Resorts (ERI) vs. Hyatt Hotels (NYSE:H)

Hyatt Hotels (NYSE:H) and Eldorado Resorts (NASDAQ:ERI) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Hyatt Hotels and Eldorado Resorts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hyatt Hotels 0 11 4 0 2.27
Eldorado Resorts 0 1 7 0 2.88

Hyatt Hotels presently has a consensus price target of $80.11, indicating a potential upside of 18.59%. Eldorado Resorts has a consensus price target of $52.93, indicating a potential upside of 49.35%. Given Eldorado Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Eldorado Resorts is more favorable than Hyatt Hotels.

Valuation & Earnings

This table compares Hyatt Hotels and Eldorado Resorts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hyatt Hotels $4.69 billion 1.58 $249.00 million $1.78 37.95
Eldorado Resorts $1.47 billion 1.86 $73.93 million $0.01 3,544.00

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

Dividends

Hyatt Hotels pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. Eldorado Resorts does not pay a dividend. Hyatt Hotels pays out 33.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

36.7% of Hyatt Hotels shares are held by institutional investors. Comparatively, 94.8% of Eldorado Resorts shares are held by institutional investors. 18.4% of Hyatt Hotels shares are held by company insiders. Comparatively, 1.5% of Eldorado Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Hyatt Hotels has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Eldorado Resorts has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Profitability

This table compares Hyatt Hotels and Eldorado Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hyatt Hotels 17.80% 4.95% 2.48%
Eldorado Resorts 10.21% 12.38% 3.21%

Summary

Eldorado Resorts beats Hyatt Hotels on 10 of the 16 factors compared between the two stocks.

Hyatt Hotels Company Profile

Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, residential, and other properties. It operates in four segments: Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, and EAME/SW Asia Management and Franchising. The company operates its properties under the Hyatt, Park Hyatt, Miraval, Grand Hyatt, Hyatt Regency, Andaz, Hyatt Centric, The Unbound Collection by Hyatt, Hyatt Place, Hyatt House, Hyatt Ziva, Hyatt Zilara, echale, Hyatt Residence Club, Hyatt Residences, World of Hyatt, and Hyatt Resorts brands and trademarks. As of September 30, 2018, its portfolio consisted of approximately 750 properties in 55 countries. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal accounts; travel organizations; and a group of individual consumers. Hyatt Hotels Corporation has a strategic development agreement with Tianfu Minyoun Hospitality for the expansion of Hyatt Place and Hyatt House hotels in China. The company was formerly known as Global Hyatt Corporation and changed its name to Hyatt Hotels Corporation in June 2009. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.

Eldorado Resorts Company Profile

Eldorado Resorts, Inc., a gaming and hospitality company, owns and operates gaming facilities in Ohio, Louisiana, Nevada, Pennsylvania, West Virginia, Colorado, Florida, Iowa, Mississippi, and Missouri. It owns and operates Eldorado Resort Casino Reno, a 814-room hotel, casino and entertainment facility; Silver Legacy Resort Casino, a 1,711-room themed hotel and casino; Circus Circus Reno, a 1,571-room hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a 403-room, all suite art deco-style hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a 357-room hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino. The company also owns and operates Isle Casino Hotel—Black Hawk, a land-based casino; Lady Luck Casino—Black Hawk, a land-based casino; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based single-level casino; Isle Casino Waterloo, a SINGLE-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a gaming vessel; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg, a dockside casino; Isle of Capri Casino Boonville, a single-level dockside casino; Isle Casino Cape Girardeau, a dockside casino and pavilion and entertainment center; Lady Luck Casino Caruthersville, a riverboat casino; Isle of Capri Casino Kansas City, a dockside casino; and Lady Luck Casino Nemacolin, a casino property, as well as operates Racelinebet.com, which offers online and telephone wagering services on horse races. As of December 31, 2017, it owned and operated approximately 950,000 square feet of casino space with approximately 21,000 slot machines and video lottery terminals, 600 table and poker games, and 7,000 hotel rooms. Eldorado Resorts, Inc. was founded in 1973 and is based in Reno, Nevada.

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