MGM Resorts International (NYSE:MGM) and Full House Resorts (NASDAQ:FLL) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Valuation & Earnings
This table compares MGM Resorts International and Full House Resorts' top-line 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 | 1.57 | $2.05 billion | $0.77 | 53.23 |
| Full House Resorts | $165.43 million | 1.79 | $-5,820,000.00 | ($0.22) | -39.59 |
MGM Resorts International has higher revenue and earnings than Full House Resorts. Full House Resorts 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.
Insider & Institutional Ownership
63.4% of MGM Resorts International shares are owned by institutional investors. Comparatively, 41.6% of Full House Resorts shares are owned by institutional investors. 5.1% of MGM Resorts International shares are owned by insiders. Comparatively, 16.7% of Full House Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for MGM Resorts International and Full House Resorts, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| MGM Resorts International | 3 | 11 | 5 | 0 | 2.11 |
| Full House Resorts | 0 | 0 | 3 | 0 | 3.00 |
MGM Resorts International currently has a consensus price target of $29.5625, indicating a potential downside of 27.88%. Full House Resorts has a consensus price target of $10.75, indicating a potential upside of 23.42%. Given Full House Resorts' stronger consensus rating and higher possible upside, analysts plainly believe Full House Resorts is more favorable than MGM Resorts International.
Risk and Volatility
MGM Resorts International has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.
Profitability
This table compares MGM Resorts International and Full House Resorts' 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% |
| Full House Resorts | -5.93% | -11.98% | -2.99% |
Summary
MGM Resorts International beats Full House Resorts on 8 of the 14 factors compared between the two stocks.
