Review of the acquisition of RedBall (NYSE: RBAC) and SeaWorld Entertainment (NYSE: SEAS)
RedBall Acquisition (NYSE:RBAC – Get Rating) and SeaWorld Entertainment (NYSE:SEAS – Get Rating) are both business services companies, but which is the best investment? We’ll compare the two companies based on valuation strength, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Institutional and insider ownership
67.9% of RedBall Acquisition shares are held by institutional investors. 1.0% of the shares of SeaWorld Entertainment are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.
Benefits and evaluation
This table compares revenue, earnings per share, and valuation of RedBall Acquisition and SeaWorld Entertainment.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Red ball acquisition||N / A||N / A||$6.78 million||N / A||N / A|
|Sea World Entertainment||$1.50 billion||2.67||$256.51 million||$3.67||15.06|
SeaWorld Entertainment has higher revenue and profit than RedBall Acquisition.
Risk and Volatility
RedBall Acquisition has a beta of 0.13, suggesting its stock price is 87% less volatile than the S&P 500. By comparison, SeaWorld Entertainment has a beta of 2.13, suggesting its stock price is 113% more volatile than the S&P 500.
This is a summary of current ratings and price targets for RedBall Acquisition and SeaWorld Entertainment, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Red ball acquisition||0||0||0||0||N / A|
|Sea World Entertainment||0||3||6||0||2.67|
SeaWorld Entertainment has a consensus price target of $79.89, indicating a potential upside of 44.52%. Given SeaWorld Entertainment’s likely higher upside, analysts clearly believe that SeaWorld Entertainment is more favorable than RedBall Acquisition.
This table compares the net margins, return on equity and return on assets of RedBall Acquisition and SeaWorld Entertainment.
|Net margins||Return on equity||return on assets|
|Red ball acquisition||N / A||-13.41%||-2.25%|
|Sea World Entertainment||18.25%||-690.93%||12.69%|
SeaWorld Entertainment beats RedBall Acquisition on 8 out of 10 factors compared between the two stocks.
About the acquisition of RedBall (Get a rating)
RedBall Acquisition Corp. has no significant activities. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses. He intends to focus on the sports, media and data analytics sectors. RedBall Acquisition Corp. was incorporated in 2020 and is based in New York, New York.
About SeaWorld Entertainment (Get a rating)
SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. The company operates SeaWorld theme parks in Orlando, Florida; San Antonio, TX; and San Diego, California, as well as Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. It also operates water park attractions in Orlando, Florida; San Antonio, TX; San Diego, California; Chula Vista, California; Tampa, Florida; and Williamsburg, Virginia. In addition, the Company operates a reservation-only theme park in Orlando, Florida and a park in Langhorne, Pennsylvania. It operates a portfolio of twelve theme parks under the SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Water Country USA, Adventure Island and Sesame Place brands. The company was formerly known as SW Holdco, Inc. and changed its name to SeaWorld Entertainment, Inc. in December 2012. SeaWorld Entertainment, Inc. was founded in 1959 and is headquartered in Orlando, Florida.
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