Caesars Entertainment (NASDAQ:CZR) vs. Sweetgreen (NYSE:SG) Financial Contrast

Sweetgreen (NYSE:SG) and Caesars Entertainment (NASDAQ:CZR) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sweetgreen and Caesars Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sweetgreen	3	9	6	0	2.17
Caesars Entertainment	1	16	2	0	2.05

Sweetgreen presently has a consensus price target of $7.72, indicating a potential downside of 15.16%. Caesars Entertainment has a consensus price target of $30.71, indicating a potential upside of 3.50%. Given Caesars Entertainment’s higher probable upside, analysts plainly believe Caesars Entertainment is more favorable than Sweetgreen.

Volatility & Risk

Sweetgreen has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sweetgreen and Caesars Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sweetgreen	$679.47 million	1.60	-$134.07 million	$0.10	91.05
Caesars Entertainment	$11.49 billion	0.53	-$502.00 million	($2.28)	-13.02

Sweetgreen has higher earnings, but lower revenue than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Sweetgreen, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sweetgreen and Caesars Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sweetgreen	2.01%	-32.94%	-16.42%
Caesars Entertainment	-3.99%	-7.64%	-0.89%

Insider and Institutional Ownership

95.8% of Sweetgreen shares are owned by institutional investors. Comparatively, 91.8% of Caesars Entertainment shares are owned by institutional investors. 18.2% of Sweetgreen shares are owned by company insiders. Comparatively, 1.2% of Caesars Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sweetgreen beats Caesars Entertainment on 10 of the 14 factors compared between the two stocks.

About Sweetgreen

Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.

About Caesars Entertainment

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.