MGM Resorts International (NYSE: MGM) is one of 30 public companies in the “Hotels & motels” industry, but how does it contrast to its competitors? We will compare MGM Resorts International to similar businesses based on the strength of its valuation, dividends, analyst recommendations, profitability, earnings, institutional ownership and risk.
Insider and Institutional Ownership
82.5% of MGM Resorts International shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Hotels & motels” companies are owned by institutional investors. 12.2% of MGM Resorts International shares are owned by insiders. Comparatively, 19.3% of shares of all “Hotels & motels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares MGM Resorts International and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|MGM Resorts International||$10.77 billion||$1.96 billion||33.84|
|MGM Resorts International Competitors||$3.57 billion||$470.05 million||165.61|
MGM Resorts International has higher revenue and earnings than its competitors. MGM Resorts International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
MGM Resorts International pays an annual dividend of $0.48 per share and has a dividend yield of 1.4%. 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.
This is a breakdown of current recommendations for MGM Resorts International and its competitors, as provided 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||307||1439||2181||73||2.51|
MGM Resorts International presently has a consensus price target of $38.43, suggesting a potential upside of 11.32%. As a group, “Hotels & motels” companies have a potential upside of 3.87%. Given MGM Resorts International’s stronger consensus rating and higher probable upside, research analysts clearly believe MGM Resorts International is more favorable than its competitors.
This table compares MGM Resorts International and its competitors’ 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%|
Risk & Volatility
MGM Resorts International has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, MGM Resorts International’s competitors have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.
MGM Resorts International beats its competitors on 9 of the 15 factors compared.
About MGM Resorts International
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.
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