Critical Analysis: Tropicana Entertainment (TPCA) vs. Peak Resorts (SKIS)

Tropicana Entertainment (OTCMKTS:TPCA) and Peak Resorts (NASDAQ:SKIS) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Tropicana Entertainment and Peak Resorts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tropicana Entertainment 0 0 0 0 N/A
Peak Resorts 0 0 3 0 3.00

Peak Resorts has a consensus target price of $6.33, suggesting a potential upside of 25.91%.

Profitability

This table compares Tropicana Entertainment and Peak 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%
Peak Resorts -1.41% -0.63% -0.13%

Earnings and Valuation

This table compares Tropicana Entertainment and Peak Resorts’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tropicana Entertainment $898.19 million 0.00 $49.84 million N/A N/A
Peak Resorts $131.66 million 0.53 $1.35 million $0.07 71.86

Tropicana Entertainment has higher revenue and earnings than Peak Resorts.

Risk & Volatility

Tropicana Entertainment has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Peak Resorts has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Dividends

Peak Resorts pays an annual dividend of $0.28 per share and has a dividend yield of 5.6%. Tropicana Entertainment does not pay a dividend. Peak Resorts pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

47.3% of Peak Resorts shares are owned by institutional investors. 83.9% of Tropicana Entertainment shares are owned by company insiders. Comparatively, 13.9% of Peak Resorts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Tropicana Entertainment beats Peak Resorts on 7 of the 11 factors compared between the two stocks.

About Tropicana Entertainment

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.

About Peak Resorts

Peak Resorts, Inc., through its subsidiaries, owns, operates, and leases day and overnight drive ski resorts in the United States. Its resorts activities and amenities include skiing, snowboarding, terrain parks, tubing, dining, lodging, equipment rentals and sales, ski and snowboard instruction, zip lines, mountain coasters, mountain biking, hiking, and other summer activities. The company also offers non-winter attractions, such as golf, roller coasters, swimming, summer concerts, and zip rides. It operates 14 ski resorts primarily located in the Northeast and Midwest. Peak Resorts, Inc. was founded in 1997 and is based in Wildwood, Missouri.

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