Wynn Resorts (NASDAQ:WYNN) and MGM Resorts International (NYSE:MGM) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Institutional & Insider Ownership
69.5% of Wynn Resorts shares are owned by institutional investors. Comparatively, 63.4% of MGM Resorts International shares are owned by institutional investors. 0.8% of Wynn Resorts shares are owned by insiders. Comparatively, 5.1% of MGM Resorts International shares are owned by 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 Wynn Resorts and MGM Resorts International's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Wynn Resorts | $6.61 billion | 2.15 | $122.99 million | $2.61 | 50.49 |
MGM Resorts International | $12.90 billion | 1.47 | $2.05 billion | $0.77 | 49.74 |
MGM Resorts International has higher revenue and earnings than Wynn Resorts. MGM Resorts International is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Wynn Resorts has a beta of 2.32, meaning that its stock price is 132% more volatile than the S&P 500. Comparatively, MGM Resorts International has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Wynn Resorts and MGM Resorts International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Wynn Resorts | 2 | 9 | 5 | 0 | 2.19 |
MGM Resorts International | 3 | 14 | 3 | 0 | 2.00 |
Wynn Resorts presently has a consensus target price of $98.6429, suggesting a potential downside of 25.15%. MGM Resorts International has a consensus target price of $25.8235, suggesting a potential downside of 32.58%. Given Wynn Resorts' stronger consensus rating and higher probable upside, equities analysts plainly believe Wynn Resorts is more favorable than MGM Resorts International.
Profitability
This table compares Wynn Resorts and MGM Resorts International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Wynn Resorts | -25.71% | -96.61% | -7.68% |
MGM Resorts International | 20.81% | -12.08% | -4.10% |
Summary
MGM Resorts International beats Wynn Resorts on 8 of the 14 factors compared between the two stocks.