Expedia Group (NASDAQ:EXPE) vs. Churchill Downs (NASDAQ:CHDN) Critical Comparison
by Sarita Garza · The Markets DailyChurchill Downs (NASDAQ:CHDN – Get Free Report) and Expedia Group (NASDAQ:EXPE – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Valuation and Earnings
This table compares Churchill Downs and Expedia Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Churchill Downs | $2.93 billion | 2.22 | $383.00 million | $6.44 | 14.73 |
| Expedia Group | $14.73 billion | 2.33 | $1.29 billion | $16.04 | 17.83 |
Expedia Group has higher revenue and earnings than Churchill Downs. Churchill Downs is trading at a lower price-to-earnings ratio than Expedia Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Churchill Downs has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
Dividends
Churchill Downs pays an annual dividend of $0.44 per share and has a dividend yield of 0.5%. Expedia Group pays an annual dividend of $1.92 per share and has a dividend yield of 0.7%. Churchill Downs pays out 6.8% of its earnings in the form of a dividend. Expedia Group pays out 12.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Churchill Downs has increased its dividend for 14 consecutive years.
Institutional & Insider Ownership
82.6% of Churchill Downs shares are owned by institutional investors. Comparatively, 90.8% of Expedia Group shares are owned by institutional investors. 5.9% of Churchill Downs shares are owned by company insiders. Comparatively, 5.2% of Expedia Group shares are owned by company 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 Churchill Downs and Expedia Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Churchill Downs | 15.15% | 39.90% | 6.43% |
| Expedia Group | 12.97% | 87.32% | 7.85% |
Analyst Recommendations
This is a summary of recent recommendations for Churchill Downs and Expedia Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Churchill Downs | 0 | 1 | 11 | 0 | 2.92 |
| Expedia Group | 1 | 20 | 18 | 0 | 2.44 |
Churchill Downs currently has a consensus price target of $126.70, indicating a potential upside of 33.61%. Expedia Group has a consensus price target of $316.37, indicating a potential upside of 10.65%. Given Churchill Downs’ stronger consensus rating and higher possible upside, equities analysts clearly believe Churchill Downs is more favorable than Expedia Group.
Summary
Expedia Group beats Churchill Downs on 11 of the 17 factors compared between the two stocks.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
About Expedia Group
Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.