Financial Contrast: MGM Resorts International (MGM) versus Century Casinos (NASDAQ:CNTY)

MGM Resorts International (NYSE: MGM) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations for MGM Resorts International and Century Casinos, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGM Resorts International 0 1 16 0 2.94
Century Casinos 0 1 1 0 2.50

MGM Resorts International currently has a consensus price target of $35.38, indicating a potential upside of 15.67%. Century Casinos has a consensus price target of $9.30, indicating a potential upside of 37.37%. Given Century Casinos’ higher possible upside, analysts plainly believe Century Casinos is more favorable than MGM Resorts International.

Earnings & Valuation

This table compares MGM Resorts International and Century Casinos’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MGM Resorts International $9.93 billion 1.77 $2.42 billion $1.69 18.10
Century Casinos $144.54 million 1.15 $24.26 million $0.35 19.34

MGM Resorts International has higher revenue and earnings than Century Casinos. MGM Resorts International is trading at a lower price-to-earnings ratio than Century Casinos, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

73.5% of MGM Resorts International shares are held by institutional investors. Comparatively, 73.2% of Century Casinos shares are held by institutional investors. 12.2% of MGM Resorts International shares are held by insiders. Comparatively, 14.5% of Century Casinos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

MGM Resorts International pays an annual dividend of $0.44 per share and has a dividend yield of 1.4%. Century Casinos does not pay a dividend. MGM Resorts International pays out 26.0% of its earnings in the form of a dividend.

Volatility & Risk

MGM Resorts International has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of -0.34, meaning that its share price is 134% less volatile than the S&P 500.

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 9.26% 7.97% 2.85%
Century Casinos 5.98% 6.07% 3.92%

Summary

MGM Resorts International beats Century Casinos on 11 of the 16 factors compared between the two stocks.

About MGM Resorts International

MGM Resorts International is a holding company. The Company, through its subsidiaries, owns and operates casino resorts. The Company operates in two segments: domestic resorts and MGM China. Its domestic resorts segment consists of non-gaming operations, including hotel, food and beverage, entertainment and other non-gaming amenities. Its casino operations feature a range of slots, table games, and race and sports book wagering. Its MGM China’s operations consist of the MGM Macau resort and casino, and the development of an integrated casino, hotel and entertainment resort on the Cotai Strip in Macau. Under its resort operation, the Company’s casino resorts offer gaming, hotel, convention, dining, entertainment, retail and other resort amenities. It owns Primm Valley Golf Club at the California/Nevada state line and Fallen Oak golf course in Saucier, Mississippi, among others. It owns and manages CityCenter Holdings, LLC, located between Bellagio and Monte Carlo.

About Century Casinos

Century Casinos, Inc. is an international casino entertainment company. The Company develops and operates gaming establishments, as well as related lodging, restaurant and entertainment facilities around the world. Its segments include Canada, the United States, Poland, and Corporate and Other. The Canada segment consists of Century Casino & Hotel-Edmonton; Century Casino Calgary; Century Downs Racetrack and Casino, and Century Bets! Inc. (Century Bets). The United States segment comprises Century Casino & Hotel-Central City, and Century Casino & Hotel-Cripple Creek. The Poland segment consists of Casinos Poland. The Corporate and Other segment comprises Cruise Ships and other. The Company owns casino operations in North America; holds interest in casinos throughout Poland; holds a racetrack and entertainment center (REC) in Canada and the pari-mutuel off-track betting network in southern Alberta; manages a casino in Aruba, and provides gaming services in Argentina.

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