CHDN vs PENN: How Churchill Downs Incorporated and PENN Entertainment Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: CHDN is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. CHDN and PENN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined CHDN and PENN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Churchill Downs Incorporated operates through three reportable segments: Live and Historical Racing (the Churchill Downs Racetrack that hosts the Kentucky Derby plus Derby City Gaming and a growing fleet of historical racing machine, or HRM, venues in Kentucky and Virginia), Wagering Services and Solutions (the TwinSpires online horse-race wagering platform, the Exacta HRM technology business, and United Tote), and Gaming (regional casino and racetrack properties). The Kentucky Derby remains the crown jewel, generating record luxury ticket sales and TV audiences, while HRM parlors have become the primary growth engine as new venues open across Kentucky and Virginia.

Full CHDN guide

PENN Entertainment operates roughly 40 casino, racing, and entertainment properties across North America, organized into Northeast, South, West, Midwest, and Interactive segments. The retail casinos generate the bulk of revenue and nearly all of the profit, while the Interactive unit runs online sports betting (rebranded to theScore Bet after the ESPN Bet partnership ended December 1, 2025) and a fast-growing standalone Hollywood iCasino product. The company reported about $1.78 billion of revenue in Q1 2026, up roughly 6% year over year, with adjusted EBITDA of about $265.8 million, though it still posted a small net loss.

Full PENN guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• CHDN drivers: Historical racing machine expansion; Kentucky Derby franchise and pricing power.
• PENN drivers: Regional casino cash engine; iCasino momentum.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Churchill Downs carries substantial leverage, with net debt of roughly $4.9 billion and a debt-to-equity ratio well above peers, which magnifies both returns and downside as interest costs and maturities in 2027 and 2028 come due. For PENN, pENN carries meaningful risk.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick CHDN if you believe its drivers more; PENN if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the CHDN and PENN guides.

CHDN. Churchill Downs trades at a mid-teens earnings multiple after record Q1 2026 revenue of about $663 million and adjusted EBITDA near $257 million, with diluted EPS of $1.16. The valuation reflects steady growth alongside heavy leverage (net debt around $4.9 billion), so much of the equity story hinges on HRM expansion continuing to compound EBITDA faster than interest costs rise.

PENN. PENN trades at a modest market cap relative to its roughly $7 billion of annual revenue, reflecting slim overall profitability as digital losses offset strong retail cash flow. Wall Street price targets in 2026 spanned a wide range, a sign of genuine disagreement over whether the digital turnaround will work. The valuation is best read as a bet on margin recovery rather than on current earnings.

Headline figures (approximate, July 2026): CHDN shows revenue (ttm) ~$2.9B, fy2025 net income ~$383M, q1 2026 revenue ~$663M (record), q1 2026 adjusted ebitda ~$257M (record); PENN shows revenue (ttm) ~$7.07B, q1 2026 revenue ~$1.78B (+6% YoY), q1 2026 adj. ebitda ~$266M, q1 2026 diluted eps ~$0.11.

CHDN and PENN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined CHDN and PENN exposure against your real portfolio. It is not an investment adviser.