International Game Technology (NYSE:IGT) and Las Vegas Sands (NYSE:LVS) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.
Profitability
This table compares International Game Technology and Las Vegas Sands' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| International Game Technology | -6.71% | 8.68% | 1.56% |
| Las Vegas Sands | 17.81% | 28.49% | 7.99% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for International Game Technology and Las Vegas Sands, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| International Game Technology | 1 | 5 | 1 | 0 | 2.00 |
| Las Vegas Sands | 0 | 5 | 13 | 0 | 2.72 |
International Game Technology presently has a consensus target price of $9.6167, indicating a potential downside of 4.50%. Las Vegas Sands has a consensus target price of $57.1357, indicating a potential upside of 21.38%. Given Las Vegas Sands' stronger consensus rating and higher possible upside, analysts plainly believe Las Vegas Sands is more favorable than International Game Technology.
Insider and Institutional Ownership
38.2% of International Game Technology shares are held by institutional investors. Comparatively, 38.1% of Las Vegas Sands shares are held by institutional investors. 1.2% of International Game Technology shares are held by company insiders. Comparatively, 10.8% of Las Vegas Sands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
International Game Technology pays an annual dividend of $0.80 per share and has a dividend yield of 7.9%. Las Vegas Sands pays an annual dividend of $3.16 per share and has a dividend yield of 6.7%. International Game Technology pays out 74.1% of its earnings in the form of a dividend. Las Vegas Sands pays out 96.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Las Vegas Sands has increased its dividend for 7 consecutive years. International Game Technology is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
International Game Technology has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Las Vegas Sands has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.
Valuation & Earnings
This table compares International Game Technology and Las Vegas Sands' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| International Game Technology | $4.79 billion | 0.43 | $-19,020,000.00 | $1.08 | 9.32 |
| Las Vegas Sands | $13.74 billion | 2.62 | $2.70 billion | $3.26 | 14.44 |
Las Vegas Sands has higher revenue and earnings than International Game Technology. International Game Technology is trading at a lower price-to-earnings ratio than Las Vegas Sands, indicating that it is currently the more affordable of the two stocks.
Summary
Las Vegas Sands beats International Game Technology on 13 of the 17 factors compared between the two stocks.
