Financial Comparison: Shake Shack (SHAK) and Empire Resorts (NYNY)

Shake Shack (NYSE: SHAK) and Empire Resorts (NASDAQ:NYNY) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

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This is a summary of recent ratings and target prices for Shake Shack and Empire Resorts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shake Shack 1 4 3 0 2.25
Empire Resorts 0 0 0 0 N/A



Shake Shack currently has a consensus price target of $40.63, indicating a potential downside of 6.07%. Given Shake Shack’s higher possible upside, research analysts clearly believe Shake Shack is more favorable than Empire Resorts.

Profitability

This table compares Shake Shack and Empire Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shake Shack -0.63% 9.47% 3.82%
Empire Resorts -70.38% -17.22% -5.66%

Volatility & Risk

Shake Shack has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Empire Resorts has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.

Earnings & Valuation

This table compares Shake Shack and Empire Resorts’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shake Shack $358.81 million 4.43 -$320,000.00 $0.57 75.88
Empire Resorts $65.85 million 9.60 -$46.34 million N/A N/A

Shake Shack has higher revenue and earnings than Empire Resorts.

Insider and Institutional Ownership

81.6% of Shake Shack shares are owned by institutional investors. Comparatively, 1.8% of Empire Resorts shares are owned by institutional investors. 34.9% of Shake Shack shares are owned by company insiders. Comparatively, 0.9% of Empire Resorts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Shake Shack beats Empire Resorts on 9 of the 11 factors compared between the two stocks.

About Shake Shack

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of December 27, 2017, it had 159 Shacks, including 90 domestic company-operated Shacks, 10 domestic licensed Shacks, and 59 international licensed Shacks. Shake Shack Inc. was founded in 2004 and is headquartered in New York, New York.

About Empire Resorts

Empire Resorts, Inc. engages in hospitality and gaming businesses in New York. The company owns and operates Monticello Casino and Raceway, a video gaming machine (VGM) and harness horseracing facility in Monticello that operates 1,110 VGMs, including 1,070 video lottery terminals and 40 electronic table game positions, as well as Resorts World Catskills, a casino resort located in Sullivan County, New York. It is also involved in conducting pari-mutuel wagering on the running of live harness horse races; the import simulcasting of harness and thoroughbred horse races from racetracks across the United States and internationally; and the export simulcasting of its races to offsite pari-mutuel wagering facilities, as well as in the development of an entertainment village and a golf course. Empire Resorts, Inc. was founded in 1993 and is based in Monticello, New York.

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