MGM Resorts International (NYSE:MGM) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Profitability
This table compares MGM Resorts International and Century Casinos' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
MGM Resorts International | 20.81% | -12.08% | -4.10% |
Century Casinos | -26.11% | -58.86% | -10.84% |
Insider and Institutional Ownership
63.4% of MGM Resorts International shares are held by institutional investors. Comparatively, 64.5% of Century Casinos shares are held by institutional investors. 5.1% of MGM Resorts International shares are held by company insiders. Comparatively, 13.2% of Century Casinos shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares MGM Resorts International and Century Casinos' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MGM Resorts International | $12.90 billion | 1.55 | $2.05 billion | $0.77 | 52.30 |
Century Casinos | $218.23 million | 1.50 | $-19,160,000.00 | ($0.65) | -17.02 |
MGM Resorts International has higher revenue and earnings than Century Casinos. Century Casinos is trading at a lower price-to-earnings ratio than MGM Resorts International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
MGM Resorts International has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for MGM Resorts International and Century Casinos, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
MGM Resorts International | 3 | 11 | 5 | 0 | 2.11 |
Century Casinos | 0 | 0 | 2 | 0 | 3.00 |
MGM Resorts International currently has a consensus price target of $29.5625, indicating a potential downside of 26.77%. Century Casinos has a consensus price target of $11.50, indicating a potential upside of 3.98%. Given Century Casinos' stronger consensus rating and higher possible upside, analysts clearly believe Century Casinos is more favorable than MGM Resorts International.
Summary
MGM Resorts International beats Century Casinos on 9 of the 14 factors compared between the two stocks.