Bally’s (NYSE:BALY) vs. Archon (OTCMKTS:ARHN) Financial Comparison

Bally’s (NYSE:BALY) and Archon (OTCMKTS:ARHN) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional and Insider Ownership

70.4% of Bally’s shares are owned by institutional investors. 69.3% of Bally’s shares are owned by insiders. Comparatively, 80.0% of Archon shares are owned by 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.

Volatility and Risk

Bally’s has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Archon has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bally’s and Archon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	2	3	0	0	1.60
Archon	0	0	0	0	0.00

Bally’s presently has a consensus price target of $12.75, suggesting a potential downside of 7.00%. Given Bally’s’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Bally’s is more favorable than Archon.

Valuation and Earnings

This table compares Bally’s and Archon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.66 billion	0.25	-$701.10 million	($8.15)	-1.68
Archon	N/A	N/A	N/A	N/A	N/A

Archon has lower revenue, but higher earnings than Bally’s.

Profitability

This table compares Bally’s and Archon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-29.98%	-56.76%	-9.16%
Archon	N/A	N/A	N/A

Summary

Bally’s beats Archon on 5 of the 9 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

About Archon

Archon Corporation, through its subsidiary, Pioneer Hotel Inc., engages in the ownership, management, and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada that consists of a casino. The company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties that include commercial office space in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.