Stock Wars: Boyd Gaming vs. Full House Resorts
Benzinga's weekly Stock Wars matches up two leaders in a major industry sector with the goal of determining which company is the better investment.
This week, the duel is between two gaming and hospitality companies: Boyd Gaming Corporation NYSE:BYD and Full House Resorts, Inc. NASDAQ:FLL.
The Case For Boyd Gaming: Company founder
Among its recent corporate developments, Boyd Gaming announced in March it was paying
In its most recent earnings activity, the first quarter data published on
"We also continued to execute our robust capital return program, repurchasing
Boyd Gaming's shares opened for trading on Wednesday at
See Also: Benzinga's complete Stock Wars series
The Case For Full House Resorts: The company was launched as Hour Corp. in 1987, changing its name shortly afterward to D.H.Z. Capital before taking on its current moniker in 1992 when it moved into the gaming world with the acquisition of
Full House attracted some major names over the years: Gulfstream Aerospace founder
In its recent corporate developments, Full House announced the February appointment of longtime casino industry executive
In its most recent earnings activity, the first quarter data published on
President and CEO
Full House shares opened for trading on Wednesday at
The Verdict: Both companies occupy space in the smaller side of the gaming industry and neither ever gets a huge amount of mainstream media attention -- and unless you're heavily focused on this sector, there is a better than average chance that neither company's name rings the proverbial bell.
Boyd Gaming is in a stronger financial position -- the return of the dividend after about a two-year absence is a welcome development -- but its shares are trending lower across its 52-week trading range. Full House is slowly expanding its micro-sized portfolio, but its quarterly performance was a disappointment and its shares are trading at bargain-basement prices.
The real wild card for these companies is how they will respond if the inflationary economy metastasizes -- with money becoming tighter and prices going up, will people continue to flock to casinos?
On the plus side, the shares in both companies are low enough to encourage scooping up armfuls of shares and holding them with long-haul optimism. But on the other hand, shouldn't these companies be enjoying a more vibrant share performance?
The verdict in this Stock Wars duel is a wait-and-see for both companies. Full House needs to show more pep and Boyd Gaming has to show its first-quarter results can be built upon. Both companies can do better, and time will determine if and when they will.
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