Las Vegas Sands (NYSE:LVS) and Advanced Drainage Systems (NYSE:WMS) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Earnings and Valuation
This table compares Las Vegas Sands and Advanced Drainage Systems' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Las Vegas Sands | $13.74 billion | 3.48 | $2.70 billion | $3.26 | 19.20 |
| Advanced Drainage Systems | $1.67 billion | 4.66 | $-193,170,000.00 | ($3.21) | -34.27 |
Las Vegas Sands has higher revenue and earnings than Advanced Drainage Systems. Advanced Drainage Systems 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.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Las Vegas Sands and Advanced Drainage Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Las Vegas Sands | 0 | 7 | 12 | 0 | 2.63 |
| Advanced Drainage Systems | 0 | 2 | 3 | 0 | 2.60 |
Las Vegas Sands currently has a consensus target price of $55.9118, indicating a potential downside of 10.68%. Advanced Drainage Systems has a consensus target price of $97.00, indicating a potential downside of 11.83%. Given Las Vegas Sands' stronger consensus rating and higher probable upside, equities research analysts plainly believe Las Vegas Sands is more favorable than Advanced Drainage Systems.
Risk & Volatility
Las Vegas Sands has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Advanced Drainage Systems has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Profitability
This table compares Las Vegas Sands and Advanced Drainage Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Las Vegas Sands | -12.67% | -12.97% | -3.03% |
| Advanced Drainage Systems | 5.71% | 19.10% | 4.33% |
Institutional and Insider Ownership
37.3% of Las Vegas Sands shares are owned by institutional investors. Comparatively, 84.1% of Advanced Drainage Systems shares are owned by institutional investors. 10.8% of Las Vegas Sands shares are owned by company insiders. Comparatively, 20.7% of Advanced Drainage Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Advanced Drainage Systems beats Las Vegas Sands on 8 of the 14 factors compared between the two stocks.
