Head-To-Head Analysis: MGM Resorts International (NYSE:MGM) & Skillz (NYSE:SKLZ)

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

Earnings and Valuation

This table compares MGM Resorts International and Skillz”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGM Resorts International	$17.28 billion	0.52	$746.56 million	$0.16	203.93
Skillz	$95.47 million	1.14	-$48.23 million	($4.20)	-1.48

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

Volatility and Risk

MGM Resorts International has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Skillz has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	0.40%	16.95%	1.48%
Skillz	-69.44%	-39.99%	-20.44%

Analyst Ratings

This is a breakdown of recent ratings and target prices for MGM Resorts International and Skillz, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	3	8	14	0	2.44
Skillz	1	0	1	0	2.00

MGM Resorts International presently has a consensus target price of $47.58, suggesting a potential upside of 45.83%. Skillz has a consensus target price of $15.00, suggesting a potential upside of 141.16%. Given Skillz’s higher probable upside, analysts plainly believe Skillz is more favorable than MGM Resorts International.

Insider & Institutional Ownership

68.1% of MGM Resorts International shares are held by institutional investors. Comparatively, 19.4% of Skillz shares are held by institutional investors. 3.1% of MGM Resorts International shares are held by insiders. Comparatively, 30.4% of Skillz shares are held by 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.

Summary

MGM Resorts International beats Skillz on 10 of the 14 factors compared between the two stocks.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include 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 incorporated in 1986 and is based in Las Vegas, Nevada.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.