Brightstar Lottery (BRSL) vs Churchill Downs, Incorporated (CHDN)

Brightstar Lottery and Churchill Downs, Incorporated are both Gambling companies. Churchill Downs, Incorporated is the larger, with a market value of $5.5B against $1.8B — 3.1× the size. Brightstar Lottery trades at the lower P/E: 7.6× against 13.7×. Churchill Downs, Incorporated grew revenue faster over the last twelve months: 5.73% against 0.65%. Churchill Downs, Incorporated has the higher net margin (13.8% vs 10.1%) and the higher return on invested capital (7.75% vs 6.38%). Both pay a dividend; Brightstar Lottery yields more (3.09% vs 0.30%). Across the 21 metrics below, Brightstar Lottery leads on 11 and Churchill Downs, Incorporated on 10.

Valuation

Metric BRSL CHDN Gambling median
P/E 7.63 13.65 16.33
P/S 0.74 1.87 0.86
P/B 0.91 4.16 3.20
Price to free cash flow n/m 15.98 18.30
EV/EBITDA 5.13 10.49 9.68
EV/Sales 2.37 3.36 1.63
Earnings yield 13.10% 7.32% (0.02%)
Free cash flow yield (121.02%) 6.26% 4.45%

Profitability

Metric BRSL CHDN Gambling median
Gross margin 48.54% 34.18% 51.63%
Operating margin 23.99% 24.13% (1.47%)
Net margin 10.05% 13.80% (3.01%)
Free cash flow margin (89.99%) 18.98% 2.54%
Return on equity 12.30% 34.67% 10.65%
Return on assets 2.57% 5.54% (1.07%)
Return on invested capital 6.38% 7.75% 0.00%

Growth

Metric BRSL CHDN Gambling median
Revenue growth (TTM) 0.65% 5.73% 5.73%
EPS growth (last fiscal year) (56.73%) (6.87%) —
Revenue growth, 5-year CAGR (4.22%) 22.65% 23.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BRSL CHDN Gambling median
Debt to equity 2.16 3.56 0.13
Current ratio 1.10 0.36 1.06
Net debt to EBITDA 2.49 5.24 0.25

Dividend

Metric BRSL CHDN Gambling median
Dividend yield 3.09% 0.30% —
Payout ratio 0.61 0.08 0.00

Size

Metric BRSL CHDN Gambling median
Market cap 1.79b 5.53b 673.72m

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