Comparing MGM Resorts International (MGM) & Las Vegas Sands Corp. (NYSE:LVS)

MGM Resorts International (NYSE: MGM) and Las Vegas Sands Corp. (NYSE:LVS) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

74.1% of MGM Resorts International shares are owned by institutional investors. Comparatively, 38.5% of Las Vegas Sands Corp. shares are owned by institutional investors. 12.2% of MGM Resorts International shares are owned by company insiders. Comparatively, 10.1% of Las Vegas Sands Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares MGM Resorts International and Las Vegas Sands Corp.’s 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%
Las Vegas Sands Corp. 16.66% 29.91% 10.65%

Dividends

MGM Resorts International pays an annual dividend of $0.44 per share and has a dividend yield of 1.4%. Las Vegas Sands Corp. pays an annual dividend of $2.92 per share and has a dividend yield of 4.9%. MGM Resorts International pays out 26.0% of its earnings in the form of a dividend. Las Vegas Sands Corp. pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MGM Resorts International has increased its dividend for 4 consecutive years.

Risk and Volatility

MGM Resorts International has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Las Vegas Sands Corp. has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MGM Resorts International and Las Vegas Sands Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGM Resorts International 0 1 16 0 2.94
Las Vegas Sands Corp. 0 7 10 0 2.59

MGM Resorts International currently has a consensus price target of $35.38, indicating a potential upside of 15.22%. Las Vegas Sands Corp. has a consensus price target of $64.15, indicating a potential upside of 6.91%. Given MGM Resorts International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MGM Resorts International is more favorable than Las Vegas Sands Corp..

Valuation & Earnings

This table compares MGM Resorts International and Las Vegas Sands Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MGM Resorts International $9.93 billion 1.78 $2.42 billion $1.69 18.17
Las Vegas Sands Corp. $12.29 billion 3.86 $4.37 billion $2.58 23.26

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

Summary

Las Vegas Sands Corp. beats MGM Resorts International on 9 of the 17 factors compared between the two stocks.

MGM Resorts International Company Profile

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.

Las Vegas Sands Corp. Company Profile

Las Vegas Sands Corp. is a developer of destination properties (integrated resorts) that feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company owns and operates integrated resorts in Asia and the United States. The Company’s principal operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States. In Macao, the Company’s segments include The Venetian Macao; Sands Cotai Central; The Parisian Macao; Four Seasons Macao; Sands Macao, and Other Asia (comprises the Company’s ferry operations and various other operations). In Singapore, the Company’s segments include Marina Bay Sands. In the United States, the Company’s segments include Las Vegas Operating Properties and Sands Bethlehem. The Company also offers players club loyalty programs at its properties, which provides access to rewards, privileges and members-only events.

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