Churchill Downs (CHDN) versus International Speedway (ISCA) Head to Head Analysis

Churchill Downs (NASDAQ: CHDN) and International Speedway (NASDAQ:ISCA) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Valuation and Earnings

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This table compares Churchill Downs and International Speedway’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Churchill Downs $882.60 million 3.70 $140.50 million $5.88 41.14
International Speedway $671.43 million 2.71 $110.82 million $1.61 25.59



Churchill Downs has higher revenue and earnings than International Speedway. International Speedway is trading at a lower price-to-earnings ratio than Churchill Downs, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Churchill Downs and International Speedway, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Churchill Downs 0 2 1 0 2.33
International Speedway 1 0 0 0 1.00

Churchill Downs currently has a consensus price target of $244.67, indicating a potential upside of 1.14%. International Speedway has a consensus price target of $40.00, indicating a potential downside of 2.91%. Given Churchill Downs’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Churchill Downs is more favorable than International Speedway.

Institutional & Insider Ownership

83.7% of Churchill Downs shares are held by institutional investors. Comparatively, 52.0% of International Speedway shares are held by institutional investors. 13.8% of Churchill Downs shares are held by company insiders. Comparatively, 43.1% of International Speedway shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Churchill Downs and International Speedway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Churchill Downs 11.47% 16.80% 4.66%
International Speedway 38.51% 5.25% 3.44%

Dividends

Churchill Downs pays an annual dividend of $1.52 per share and has a dividend yield of 0.6%. International Speedway pays an annual dividend of $0.43 per share and has a dividend yield of 1.0%. Churchill Downs pays out 25.9% of its earnings in the form of a dividend. International Speedway pays out 26.7% 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. International Speedway has increased its dividend for 12 consecutive years. International Speedway is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Churchill Downs has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, International Speedway has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Summary

Churchill Downs beats International Speedway on 12 of the 17 factors compared between the two stocks.

Churchill Downs Company Profile

Churchill Downs Incorporated operates as a racing, gaming, and online entertainment company in the United States. It operates through Racing, Casinos, TwinSpires, and Other Investments segments. The company operates 4 racetracks, including Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 11 off-track betting (OTB) facilities in Illinois; Fair Grounds Race Course in New Orleans along with 12 OTBs in Louisiana; and Calder Race Course in Miami Gardens, Florida. It also operates five casinos, which provides brick-and-mortar real-money casino gaming services with approximately 10,000 gaming positions; and operates 3 hotels. In addition, the company through TwinSpires.com operates mobile and online wagering business; and a platform for betting on horseracing, as well as offers streaming video of live horse races, replays, and an assortment of racing information. Further, it offers reports, statistical information, handicapping information, pedigrees, and other data for the thoroughbred horse industry through Brisnet.com and TwinSpires.com. Additionally, the company manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses; and provides totalisator and Internet-based interactive gaming services. Churchill Downs Incorporated was founded in 1928 and is headquartered in Louisville, Kentucky.

International Speedway Company Profile

International Speedway Corporation, together with its subsidiaries, promotes motorsports themed entertainment activities in the United States. Its motorsports themed event operations consist principally of racing events at its motorsports entertainment facilities, which promote approximately 100 stock car, open wheel, sports car, truck, motorcycle, and other racing events. The company is also involved in food and beverage concession operations; the provision of catering services in suites and chalets; and the creation of motorsports-related programming content carried on radio stations, as well as Sirius XM Radio, a national satellite radio service. In addition, it uses its motorsports entertainment facilities for testing for teams, driving schools, riding experiences, car shows, auto fairs, concerts, and music festivals, as well as settings for television commercials, print advertisements, and motion pictures. Further, the company engages in souvenir merchandising operations. It owns and/or operates 13 motorsports entertainment facilities with approximately 761,000 grandstand seats and 560 suites. The company was formerly known as Daytona International Speedway Corporation and changed its name to International Speedway Corporation in 1968. International Speedway Corporation was founded in 1953 and is headquartered in Daytona Beach, Florida.

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