Tropicana Entertainment (TPCA) vs. Park Hotels & Resorts (PK) Head-To-Head Review

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Tropicana Entertainment (OTCMKTS:TPCA) and Park Hotels & Resorts (NYSE:PK) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Volatility & Risk

Tropicana Entertainment has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Profitability

This table compares Tropicana Entertainment and Park Hotels & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tropicana Entertainment 5.77% 5.62% 4.35%
Park Hotels & Resorts 17.46% 8.27% 5.06%

Dividends

Park Hotels & Resorts pays an annual dividend of $1.72 per share and has a dividend yield of 5.6%. Tropicana Entertainment does not pay a dividend. Park Hotels & Resorts pays out 61.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tropicana Entertainment and Park Hotels & Resorts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tropicana Entertainment 0 0 0 0 N/A
Park Hotels & Resorts 2 5 4 0 2.18

Park Hotels & Resorts has a consensus price target of $31.79, suggesting a potential upside of 3.03%. Given Park Hotels & Resorts’ higher possible upside, analysts clearly believe Park Hotels & Resorts is more favorable than Tropicana Entertainment.

Valuation and Earnings

This table compares Tropicana Entertainment and Park Hotels & Resorts’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tropicana Entertainment $898.19 million 1.96 $49.84 million N/A N/A
Park Hotels & Resorts $2.79 billion 2.22 $2.63 billion $2.78 11.10

Park Hotels & Resorts has higher revenue and earnings than Tropicana Entertainment.

Institutional and Insider Ownership

0.1% of Tropicana Entertainment shares are owned by institutional investors. 83.9% of Tropicana Entertainment shares are owned by insiders. Comparatively, 0.4% of Park Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Park Hotels & Resorts beats Tropicana Entertainment on 10 of the 13 factors compared between the two stocks.

Tropicana Entertainment Company Profile

Tropicana Entertainment Inc. owns and operates casino and entertainment properties in the United States. It operates two casinos in Nevada; and one casino in each of Indiana, Louisiana, Mississippi, Missouri, and New Jersey, as well as a hotel, timeshare, and casino resort property located on the island of Aruba. As of December 31, 2017, the company properties included approximately 399,000 square feet of gaming space with approximately 8,000 slot machines, 270 table games and 5,800 hotel rooms. The company is headquartered in Las Vegas, Nevada. Tropicana Entertainment Inc. is a subsidiary of Icahn Enterprises Holdings L.P.

Park Hotels & Resorts Company Profile

Park is a leading lodging REIT with a diverse portfolio of hotels and resorts with significant underlying real estate value. Park's portfolio consists of 54 premium-branded hotels and resorts with over 32,000 rooms, a majority of which are located in prime United States markets with high barriers to entry.

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