Archon (OTCMKTS: ARHN – Get Rating) and Everi (NYSE: EVRI – Get Rating) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Insider and Institutional Ownership
88.4% of Everi shares are owned by institutional investors. 80.0% of Archon shares are owned by insiders. Comparatively, 4.6% of Everi shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Archon and Everi’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Archon N / A N / A N / A Everi 23.52% 98.81% 8.12%
Risk and Volatility
Archon has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Everi has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500.
Valuation & Earnings
This table compares Archon and Everi’s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price / Sales Ratio Net Income Earnings Per Share Price / Earnings Ratio Archon N / A N / A N / A N / A N / A Everi $ 660.39 million 2.33 $ 152.93 million $ 1.62 10.30
Everi has higher revenue and earnings than Archon.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Archon and Everi, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Archon 0 0 0 0 N / A Everi 0 0 4 1 3.20
Everi has a consensus price target of $ 31.25, suggesting a potential upside of 87.24%. Given Everi’s higher probable upside, analysts clearly believe Everi is more favorable than Archon.
Summary
Everi beats Archon on 9 of the 10 factors compared between the two stocks.
Archon Company Profile (Get Rating)
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 casino, as well as 416 motel rooms. As of September 30, 2010, the Pioneer had approximately 686 slot machines, 6 blackjack tables, 1 craps table, 1 roulette wheel, and 5 other gaming tables. 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.
Everi Company Profile (Get Rating)
Everi Holdings Inc. provides entertainment and technology solutions for the casino and digital gaming industries in the United States, Canada, the United Kingdom, Europe, the Caribbean, Central America, and Asia. It operates in two segments, Games and FinTech. The company offers local and wide-area progressive gaming products, such as classic mechanical reel games and video reel games, as well as TournEvent, a slot tournament terminal and system machine; and sells player terminals, licenses, game content, and related equipment. It also provides financial access services, such as funds dispensed, credit card and POS debit card financial access transactions; check warranty; CashClub, a software payments platform that provides gaming establishments with a personal computer workstation software user interface and point-of-sale terminal; CashClub Wallet, a digital payments platform for gaming establishments; fully integrated kiosks that provide multiple functions to the casino floor; loyalty kiosk and related equipment; and other integrated kiosk solutions. In addition, the company offers non-funds dispensing terminals that perform authorizations for credit card financial access and POS debit card financial access transactions; and database services. Further, it provides Everi Compliance solutions to assist casino operators with meeting regulatory requirements; Central Credit, a gaming patron credit bureau service; JackpotXpress, a jackpot payout and tax form management platform; and loyalty platform, as well as support and maintenance services. The company was formerly known as Global Cash Access Holdings, Inc. and changed its name to Everi Holdings Inc. in August 2015. Everi Holdings Inc. was founded in 1998 and is headquartered in Las Vegas, Nevada.
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