Archon (OTCMKTS:ARHN) vs. International Game Technology (NYSE:IGT) Financial Investigation
International game technology (New York Stock Exchange: IGT – Get a rating) and Archon (OTCMKTS:ARHN – Get a rating) are both consumer discretionary companies, but which is the better company? We’ll compare the two companies based on institutional ownership strength, risk, analyst recommendations, dividends, valuation, earnings, and profitability.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of International Game Technology and Archon.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|International game technology||$4.09 billion||0.90||$482.00 million||$2.28||7.93|
|Archon||N / A||N / A||N / A||N / A||N / A|
International Game Technology has higher revenue and profit than Archon.
This is a summary of the current ratings and price targets for International Game Technology and Archon, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|International gaming technology||0||0||6||0||3.00|
|Archon||0||0||0||0||N / A|
International Game Technology currently has a consensus target price of $38.67, suggesting a potential upside of 113.98%. Given International Game Technology’s likely higher upside, research analysts clearly believe that International Game Technology is more favorable than Archon.
Risk and Volatility
International Game Technology has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Archon has a beta of -0.02, suggesting that its stock price is stock is 102% less volatile than the S&P 500.
Institutional and insider ownership
44.3% of International Game Technology shares are held by institutional investors. 1.2% of the shares of International Game Technology are held by insiders of the company. By comparison, 80.0% of Archon’s stock is held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.
This table compares the net margins, return on equity and return on assets of International Game Technology and Archon.
|Net margins||Return on equity||return on assets|
|International gaming technology||11.37%||3.35%||0.57%|
|Archon||N / A||N / A||N / A|
International Game Technology beats Archon on 8 out of 9 factors compared between the two stocks.
About International Gaming Technology
International Game Technology PLC operates and provides game technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America and the Caribbean. It operates in three segments: Global Lottery, Global Gaming and Digital & Betting. The company designs, sells, operates and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and the lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping and delivery services. It also designs, develops, assembles and supplies cabinets, games, systems and software for the gaming market, as well as game management systems for casino management, customer relationship management, clients and server games. In addition, the Company provides Video Lottery Terminals (VLT), VLT Central Systems and VLT Games. Moreover, it offers digital games and bets; sports betting; and technology and management services. In addition, the Company provides digital gaming products and services, including blackjack, roulette, slot machine games, poker, bingo and other casino card games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offer player account management, advanced marketing and analytics, and payment system services. It processes business transactions, such as prepaid cell phone recharges, bill payments, electronic vouchers and retail programs, electronic tax payments, prepaid card recharges, stamp duties and money transfer services. The company was previously known as GTECH SpA and changed its name to International Game Technology PLC in April 2015. The company was founded in 2014 and is headquartered in London, UK. International Game Technology PLC is a subsidiary of De Agostini SpA
Archon Corporation, through its subsidiary, Pioneer Hotel Inc., is engaged in the ownership, management and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada, which includes a casino, as well as 416 motel rooms. As of September 30, 2010, the Pioneer had approximately 686 slot machines, 6 blackjack tables, 1 craps table, 1 roulette wheel, and 5 other gaming tables. The Company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties including commercial offices in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.
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