MGM Resorts International (MGM) and Its Peers Critical Review

MGM Resorts International (NYSE: MGM) is one of 30 public companies in the “Hotels & motels” industry, but how does it contrast to its peers? We will compare MGM Resorts International to related companies based on the strength of its risk, earnings, institutional ownership, dividends, valuation, analyst recommendations and profitability.

Volatility and Risk

How to Become a New Pot Stock Millionaire

MGM Resorts International has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, MGM Resorts International’s peers have a beta of 1.15, meaning that their average share price is 15% more volatile than the S&P 500.

Profitability

This table compares MGM Resorts International and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MGM Resorts International 17.92% 5.78% 2.13%
MGM Resorts International Competitors 10.97% 12.75% 4.81%

Valuation & Earnings

This table compares MGM Resorts International and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
MGM Resorts International $10.77 billion $1.96 billion 34.86
MGM Resorts International Competitors $3.57 billion $470.05 million 185.62

MGM Resorts International has higher revenue and earnings than its peers. MGM Resorts International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MGM Resorts International and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGM Resorts International 0 5 10 0 2.67
MGM Resorts International Competitors 308 1442 2191 74 2.51

MGM Resorts International currently has a consensus target price of $38.43, suggesting a potential upside of 8.07%. As a group, “Hotels & motels” companies have a potential upside of 0.85%. Given MGM Resorts International’s stronger consensus rating and higher possible upside, equities analysts clearly believe MGM Resorts International is more favorable than its peers.

Dividends

MGM Resorts International pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. MGM Resorts International pays out 47.1% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.8% and pay out 48.0% of their earnings in the form of a dividend.

Institutional & Insider Ownership

82.5% of MGM Resorts International shares are held by institutional investors. Comparatively, 69.0% of shares of all “Hotels & motels” companies are held by institutional investors. 12.2% of MGM Resorts International shares are held by insiders. Comparatively, 19.0% of shares of all “Hotels & motels” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

MGM Resorts International beats its peers on 9 of the 15 factors compared.

MGM Resorts International Company Profile

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and China. The company operates through two segments, Domestic Resorts and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. Its casino operations include various slots, table games, and race and sports book wagering. The company operates 14 resorts in the United States; and MGM Macau resort and casino in China, as well as develops an integrated casino, hotel, and entertainment resort on the Cotai Strip, Macau. The company also owns and operates Shadow Creek golf course, Primm Valley Golf Club, and Fallen Oak golf course. The company serves premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Receive News & Ratings for MGM Resorts International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MGM Resorts International and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply