Critical Comparison: Live Nation Entertainment (LYV) versus Dover Downs Gaming & Entertainment (DDE)

Live Nation Entertainment (NYSE:LYV) and Dover Downs Gaming & Entertainment (NYSE:DDE) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Volatility and Risk

Live Nation Entertainment has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Dover Downs Gaming & Entertainment has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.



Earnings and Valuation

This table compares Live Nation Entertainment and Dover Downs Gaming & Entertainment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Live Nation Entertainment $10.34 billion 1.01 -$97.64 million ($0.48) -104.29
Dover Downs Gaming & Entertainment $176.92 million 0.47 -$1.06 million N/A N/A

Dover Downs Gaming & Entertainment has lower revenue, but higher earnings than Live Nation Entertainment.

Profitability

This table compares Live Nation Entertainment and Dover Downs Gaming & Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Live Nation Entertainment -0.35% -2.49% -0.43%
Dover Downs Gaming & Entertainment -0.66% -0.44% -0.32%

Institutional & Insider Ownership

69.7% of Live Nation Entertainment shares are owned by institutional investors. Comparatively, 14.8% of Dover Downs Gaming & Entertainment shares are owned by institutional investors. 5.2% of Live Nation Entertainment shares are owned by insiders. Comparatively, 43.4% of Dover Downs Gaming & Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Live Nation Entertainment and Dover Downs Gaming & Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Live Nation Entertainment 0 1 9 0 2.90
Dover Downs Gaming & Entertainment 0 1 0 0 2.00

Live Nation Entertainment presently has a consensus price target of $56.01, indicating a potential upside of 11.89%. Dover Downs Gaming & Entertainment has a consensus price target of $110.00, indicating a potential upside of 4,265.08%. Given Dover Downs Gaming & Entertainment’s higher probable upside, analysts clearly believe Dover Downs Gaming & Entertainment is more favorable than Live Nation Entertainment.

Summary

Live Nation Entertainment beats Dover Downs Gaming & Entertainment on 7 of the 12 factors compared between the two stocks.

About Live Nation Entertainment

Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Sponsorship & Advertising, and Ticketing segments. The Concerts segment promotes live music events in its owned and/or operated venues, and in rented third-party venues; operates and manages music venues; and produces music festivals and creates associated content. This segment also provides management and other services to artists. The Sponsorship & Advertising segment sells sponsorships and placement of advertising, including signage, online advertising, and promotional programs, as well as live streaming and music-related content; and ads across its distribution network of venues, events, and Websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events for specific brands. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients, as well as ticket resale services; and offers online access for customers relating to ticket and event information through its primary Websites, livenation.com and ticketmaster.com. It sells tickets through Websites, mobile apps, ticket outlets, and telephone call centers. This segment sells tickets for its events, as well as for third-party clients in various live event categories, such as arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. As of December 31, 2017, it owned, operated, or leased 115 entertainment venues and 140 other facilities in North America; and 35 entertainment venues and 118 other facilities internationally. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California.

About Dover Downs Gaming & Entertainment

Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment resort destination in the United States. The company operates Dover Downs Casino, a 165,000-square foot casino complex with table games, including craps, roulette, and card games; slot machine games; multi-player electronic table games; a poker room; and a race and sports book operation, as well as bars, restaurants, and six retail outlets. It also operates the Dover Downs Hotel and Conference Center, a 500 room AAA Four Diamond hotel with fine dining restaurant, spa/salon, conference, banquet, ballroom, and concert hall facilities; and Dover Downs Raceway, a harness racing track with pari-mutuel wagering on live and simulcast horse races. As of December 31, 2017, the company operated approximately 2,300 slot machines; 40 table games; and 12 poker tables. Dover Downs Gaming & Entertainment, Inc. was founded in 1969 and is based in Dover, Delaware.

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