Galaxy Gaming (OTCMKTS:GLXZ – Get Free Report) and PENN Entertainment (NASDAQ:PENN – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
Earnings and Valuation
This table compares Galaxy Gaming and PENN Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Galaxy Gaming | $31.74 million | 1.22 | -$2.63 million | ($0.03) | -51.00 |
| PENN Entertainment | $6.96 billion | 0.30 | -$311.50 million | ($6.35) | -2.46 |
Profitability
This table compares Galaxy Gaming and PENN Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Galaxy Gaming | -3.02% | N/A | -2.99% |
| PENN Entertainment | -12.11% | -1.79% | -0.32% |
Risk and Volatility
Galaxy Gaming has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Institutional & Insider Ownership
0.4% of Galaxy Gaming shares are held by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are held by institutional investors. 21.9% of Galaxy Gaming shares are held by company insiders. Comparatively, 2.7% of PENN Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Galaxy Gaming and PENN Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
| PENN Entertainment | 1 | 7 | 8 | 0 | 2.44 |
PENN Entertainment has a consensus price target of $19.29, suggesting a potential upside of 23.31%. Given PENN Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe PENN Entertainment is more favorable than Galaxy Gaming.
Summary
PENN Entertainment beats Galaxy Gaming on 8 of the 14 factors compared between the two stocks.
About Galaxy Gaming
Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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