Analyzing Cedar Fair (NYSE:FUN) and Galaxy Gaming (OTCMKTS:GLXZ)

Cedar Fair (NYSE:FUN) and Galaxy Gaming (OTCMKTS:GLXZ) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

This table compares Cedar Fair and Galaxy Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cedar Fair	6.80%	-23.97%	6.70%
Galaxy Gaming	-6.21%	N/A	-4.51%

Earnings & Valuation

This table compares Cedar Fair and Galaxy Gaming”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cedar Fair	$1.82 billion	2.17	$124.56 million	$2.47	15.92
Galaxy Gaming	$27.79 million	2.45	-$1.81 million	($0.07)	-38.86

Cedar Fair has higher revenue and earnings than Galaxy Gaming. Galaxy Gaming is trading at a lower price-to-earnings ratio than Cedar Fair, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

64.7% of Cedar Fair shares are owned by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are owned by institutional investors. 1.8% of Cedar Fair shares are owned by insiders. Comparatively, 21.9% of Galaxy Gaming shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Cedar Fair has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Cedar Fair and Galaxy Gaming, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cedar Fair	1	1	11	0	2.77
Galaxy Gaming	0	0	0	0	N/A

Cedar Fair currently has a consensus price target of $55.46, suggesting a potential upside of 41.05%. Given Cedar Fair’s higher possible upside, equities research analysts clearly believe Cedar Fair is more favorable than Galaxy Gaming.

Summary

Cedar Fair beats Galaxy Gaming on 10 of the 13 factors compared between the two stocks.

About Cedar Fair

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

About Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.