Head to Head Review: Brightstar Lottery (BRSL) versus Its Rivals

by · The Markets Daily

Brightstar Lottery (NYSE:BRSLGet Free Report) is one of 385 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its peers? We will compare Brightstar Lottery to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Volatility and Risk

Brightstar Lottery has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Brightstar Lottery’s peers have a beta of 1.61, meaning that their average stock price is 61% more volatile than the S&P 500.

Institutional and Insider Ownership

44.3% of Brightstar Lottery shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 1.2% of Brightstar Lottery shares are owned by company insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Brightstar Lottery and its peers’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Brightstar Lottery10.05%10.47%2.06%
Brightstar Lottery Competitors-10.50%-41.57%2.01%

Earnings and Valuation

This table compares Brightstar Lottery and its peers gross revenue, earnings per share and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
Brightstar Lottery$2.51 billion$147.00 million7.83
Brightstar Lottery Competitors$3.27 billion$245.98 million9.47

Brightstar Lottery’s peers have higher revenue and earnings than Brightstar Lottery. Brightstar Lottery is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Brightstar Lottery pays an annual dividend of $0.92 per share and has a dividend yield of 9.0%. Brightstar Lottery pays out 70.8% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.7% and pay out 36.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Brightstar Lottery and its peers, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Brightstar Lottery14402.33
Brightstar Lottery Competitors372216912249928882.50

Brightstar Lottery currently has a consensus price target of $15.10, indicating a potential upside of 48.42%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 77.82%. Given Brightstar Lottery’s peers stronger consensus rating and higher possible upside, analysts clearly believe Brightstar Lottery has less favorable growth aspects than its peers.

Summary

Brightstar Lottery peers beat Brightstar Lottery on 11 of the 15 factors compared.

Brightstar Lottery Company Profile

(Get Free Report)

International Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. It also designs, develops, assembles, and provides cabinets, games, systems, and software for the gaming market, as well as offers gaming management systems for casino management, customer relationship management, patron management, and server-based gaming. In addition, the company provides video lottery terminals (VLT), VLT central systems, and VLT games. Further, it offers digital gaming and betting; sports betting; and technology and management services. Additionally, the company provides digital gaming products and services, including blackjack, roulette, slot games, poker, bingo, and other casino card games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offer player account management, advanced marketing and analytical, and payment system services. It processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfer services. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was founded in 2014 and is headquartered in London, the United Kingdom. International Game Technology PLC is a subsidiary of De Agostini S.p.A.