Reviewing Pinnacle Entertainment (PNK) & Its Rivals

Pinnacle Entertainment (NASDAQ: PNK) is one of 30 public companies in the “Hotels & motels” industry, but how does it weigh in compared to its rivals? We will compare Pinnacle Entertainment to related businesses based on the strength of its profitability, earnings, analyst recommendations, risk, dividends, institutional ownership and valuation.

Volatility and Risk

Pinnacle Entertainment has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Pinnacle Entertainment’s rivals have a beta of 1.15, meaning that their average share price is 15% more volatile than the S&P 500.



Earnings and Valuation

This table compares Pinnacle Entertainment and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pinnacle Entertainment $2.56 billion $63.10 million 30.57
Pinnacle Entertainment Competitors $3.57 billion $470.05 million 184.05

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

Profitability

This table compares Pinnacle Entertainment and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pinnacle Entertainment 2.46% -18.61% 1.59%
Pinnacle Entertainment Competitors 10.97% 12.75% 4.81%

Insider & Institutional Ownership

86.1% of Pinnacle Entertainment shares are held by institutional investors. Comparatively, 69.0% of shares of all “Hotels & motels” companies are held by institutional investors. 10.3% of Pinnacle Entertainment shares are held by insiders. Comparatively, 19.0% of shares of all “Hotels & motels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Pinnacle Entertainment and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle Entertainment 0 6 3 0 2.33
Pinnacle Entertainment Competitors 308 1443 2192 75 2.51

Pinnacle Entertainment currently has a consensus target price of $30.17, suggesting a potential downside of 3.25%. As a group, “Hotels & motels” companies have a potential upside of 1.47%. Given Pinnacle Entertainment’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Pinnacle Entertainment has less favorable growth aspects than its rivals.

Summary

Pinnacle Entertainment rivals beat Pinnacle Entertainment on 11 of the 13 factors compared.

Pinnacle Entertainment Company Profile

Pinnacle Entertainment, Inc. owns, develops, and operates casinos and related hospitality and entertainment facilities in the United States. It operates through Midwest, South, and West segments. As of February 28, 2018, the company owned and operated 16 gaming entertainment businesses located in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, and Pennsylvania. It also holds interest in the racing license owner, as well as a management contract, for Retama Park Racetrack outside of San Antonio, Texas. In addition, the company owns and operates a live and televised poker tournament series under the Heartland Poker Tour name. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1938 and is headquartered in Las Vegas, Nevada.

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