Critical Survey: Tropicana Entertainment (TPCA) vs. InterContinental Hotels Group (IHG)

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Tropicana Entertainment (OTCMKTS:TPCA) and InterContinental Hotels Group (NYSE:IHG) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Volatility and Risk

Tropicana Entertainment has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, InterContinental Hotels Group has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Tropicana Entertainment and InterContinental Hotels Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tropicana Entertainment 0 0 0 0 N/A
InterContinental Hotels Group 3 5 0 0 1.63

InterContinental Hotels Group has a consensus price target of $66.00, indicating a potential upside of 17.63%.

Earnings and Valuation

This table compares Tropicana Entertainment and InterContinental Hotels Group’s gross 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
InterContinental Hotels Group $1.78 billion 6.00 $592.00 million N/A N/A

InterContinental Hotels Group has higher revenue and earnings than Tropicana Entertainment.

Insider and Institutional Ownership

6.8% of InterContinental Hotels Group shares are held by institutional investors. 83.9% of Tropicana Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Tropicana Entertainment and InterContinental Hotels Group’s 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%
InterContinental Hotels Group N/A N/A N/A

Dividends

InterContinental Hotels Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Tropicana Entertainment does not pay a dividend. InterContinental Hotels Group has raised its dividend for 6 consecutive years.

Summary

InterContinental Hotels Group beats Tropicana Entertainment on 6 of the 10 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 InterContinental Hotels Group

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels, resorts, and restaurants under the InterContinental, Kimpton, Hotel Indigo, EVEN, HUALUXE, Crowne Plaza, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, Holiday Inn Resort, avid, Staybridge Suites, Candlewood Suites, and InterContinental Hotels & Resorts brands. It also provides IHG Rewards Club, a hotel loyalty program. As of August 22, 2018, the company had approximately 5,400 hotels with 810,000 rooms. InterContinental Hotels Group PLC was founded in 1967 and is headquartered in Denham, the United Kingdom.

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