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BYD vs. CHDN: Which Stock Is the Better Value Option?

Investors with an interest in Gaming stocks have likely encountered both Boyd Gaming (BYD) and Churchill Downs (CHDN). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Boyd Gaming and Churchill Downs are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that BYD likely has seen a stronger improvement to its earnings outlook than CHDN has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BYD currently has a forward P/E ratio of 9.50, while CHDN has a forward P/E of 26.06. We also note that BYD has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHDN currently has a PEG ratio of 1.

Another notable valuation metric for BYD is its P/B ratio of 3.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHDN has a P/B of 12.36.

These are just a few of the metrics contributing to BYD's Value grade of A and CHDN's Value grade of D.

BYD sticks out from CHDN in both our Zacks Rank and Style Scores models, so value investors will likely feel that BYD is the better option right now.


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Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
 
Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report
 
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Zacks Investment Research