Yum! Brands (NYSE:YUM) vs. Bally’s (NYSE:BALY) Financial Review
by Tristan Rich · The Markets DailyYum! Brands (NYSE:YUM – Get Free Report) and Bally’s (NYSE:BALY – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Profitability
This table compares Yum! Brands and Bally’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yum! Brands | 25.42% | -24.57% | 22.24% |
| Bally’s | -25.83% | -40.97% | -7.66% |
Valuation and Earnings
This table compares Yum! Brands and Bally’s”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yum! Brands | $8.72 billion | 4.41 | $1.56 billion | $7.95 | 17.72 |
| Bally’s | $2.45 billion | 0.20 | -$701.10 million | ($6.80) | -1.42 |
Yum! Brands has higher revenue and earnings than Bally’s. Bally’s is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Yum! Brands has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Bally’s has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Yum! Brands and Bally’s, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yum! Brands | 1 | 6 | 13 | 1 | 2.67 |
| Bally’s | 2 | 3 | 0 | 0 | 1.60 |
Yum! Brands currently has a consensus price target of $175.24, indicating a potential upside of 24.37%. Bally’s has a consensus price target of $11.75, indicating a potential upside of 21.32%. Given Yum! Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Yum! Brands is more favorable than Bally’s.
Insider and Institutional Ownership
82.4% of Yum! Brands shares are owned by institutional investors. Comparatively, 70.4% of Bally’s shares are owned by institutional investors. 0.1% of Yum! Brands shares are owned by company insiders. Comparatively, 69.3% of Bally’s shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Yum! Brands beats Bally’s on 13 of the 15 factors compared between the two stocks.
About Yum! Brands
Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.
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.