Churchill Downs, Incorporated (CHDN) vs Light & Wonder, Inc. (LNWO)

Churchill Downs, Incorporated and Light & Wonder, Inc. are both Gambling companies. Light & Wonder, Inc. is the larger, with a market value of $7.0B against $5.5B — 1.3× the size. Churchill Downs, Incorporated trades at the lower P/E: 13.7× against 22.6×. Churchill Downs, Incorporated grew revenue faster over the last twelve months: 5.73% against 4.75%. Churchill Downs, Incorporated has the higher net margin (13.8% vs 8.09%) and the lower return on invested capital (7.75% vs 8.00%). Across the 21 metrics below, Churchill Downs, Incorporated leads on 12 and Light & Wonder, Inc. on 9.

Valuation

Metric CHDN LNWO Gambling median
P/E 13.65 22.65 16.33
P/S 1.87 1.78 0.86
P/B 4.16 19.79 3.20
Price to free cash flow 15.98 12.57 18.30
EV/EBITDA 10.49 16.36 9.68
EV/Sales 3.36 3.24 1.63
Earnings yield 7.32% 4.42% (0.02%)
Free cash flow yield 6.26% 7.96% 4.45%

Profitability

Metric CHDN LNWO Gambling median
Gross margin 34.18% 74.35% 51.63%
Operating margin 24.13% 19.83% (1.47%)
Net margin 13.80% 8.09% (3.01%)
Free cash flow margin 18.98% 16.57% 2.54%
Return on equity 34.67% 53.98% 10.65%
Return on assets 5.54% 4.22% (1.07%)
Return on invested capital 7.75% 8.00% 0.00%

Growth

Metric CHDN LNWO Gambling median
Revenue growth (TTM) 5.73% 4.75% 5.73%
EPS growth (last fiscal year) (6.87%) (11.41%) —
Revenue growth, 5-year CAGR 22.65% 14.30% 23.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CHDN LNWO Gambling median
Debt to equity 3.56 16.99 0.13
Current ratio 0.36 1.73 1.06
Net debt to EBITDA 5.24 4.50 0.25

Dividend

Metric CHDN LNWO Gambling median
Dividend yield 0.30% — —
Payout ratio 0.08 0.00 0.00

Size

Metric CHDN LNWO Gambling median
Market cap 5.53b 7.03b 673.72m

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