WinmarkBally's

Winmark vs Bally's

This page compares WINMARK CORP and BALLYS CORPORATION COM SHS to provide a neutral view of their business models, financial performance, and market context. It explains how each company operates, the...

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Only Game In Town

Only Game In Town

These companies have achieved such dominance that they face little to no real competition in their markets. Our analysts have carefully selected businesses with unmatched market power, creating stability and sustained profitability that comes from being the only real choice in their sectors.

Published: June 20, 2025

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Niche Dominators

Niche Dominators

These carefully selected companies rule their specialized markets by design. They've built powerful competitive advantages in focused segments that larger companies often overlook, creating a path to consistent profits and sustainable growth.

Published: June 17, 2025

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The Focused Experts

The Focused Experts

Meet the masters of specialization - companies that have perfected a single business craft rather than spreading themselves thin. These stocks represent businesses with laser-focused missions, creating powerful competitive advantages that diversified conglomerates simply can't match.

Published: June 17, 2025

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Investment Analysis

Pros

  • Winmark operates a strong franchise model with 1,371 franchises in operation and 77 awarded but not yet open, supporting steady growth.
  • The company reported strong profitability with a net profit margin close to 49% and solid net income growth year-over-year.
  • Winmark recently increased its quarterly dividend to $0.96 per share, reflecting robust cash flow and shareholder returns.

Considerations

  • Winmark trades at a relatively high valuation with a trailing PE ratio over 36 and forward PE near 34, which may limit upside potential.
  • The company’s share count has slightly increased over the past year, which could signal mild dilution to shareholders.
  • Winmark's beta is low at 0.67, indicating less market volatility exposure but potentially limited gains in rising markets.

Pros

  • Bally’s operates in the growing gaming, hospitality, and entertainment sectors, with a portfolio that supports growth through omnichannel expansion.
  • The company is a smaller value stock offering potential upside through restructuring or operational improvements.
  • Bally's has a large workforce of roughly 10,500 employees, reflecting operational scale and diverse capabilities.

Considerations

  • Bally’s shows weak financial health with a current ratio of 0.61 and a negative interest coverage ratio, indicating liquidity and debt servicing concerns.
  • The company reports negative returns on assets and equity, signalling profitability struggles and operational inefficiencies.
  • Valuation metrics such as price-to-sales and price-to-cash flow ratios are low, suggesting the market perceives execution and growth risks.

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