MGM Resorts International (NYSE:MGM) and Full House Resorts (NASDAQ:FLL) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
Earnings and Valuation
This table compares MGM Resorts International and Full House Resorts’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MGM Resorts International||$10.77 billion||1.32||$1.96 billion||$1.02||25.93|
|Full House Resorts||$161.27 million||0.48||-$5.02 million||($0.22)||-13.18|
MGM Resorts International has higher revenue and earnings than Full House Resorts. Full House Resorts 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.
This is a summary of recent recommendations and price targets for MGM Resorts International and Full House Resorts, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MGM Resorts International||0||4||9||0||2.69|
|Full House Resorts||0||0||3||0||3.00|
MGM Resorts International currently has a consensus target price of $36.91, suggesting a potential upside of 39.54%. Full House Resorts has a consensus target price of $4.08, suggesting a potential upside of 40.80%. Given Full House Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Full House Resorts is more favorable than MGM Resorts International.
Insider & Institutional Ownership
79.8% of MGM Resorts International shares are owned by institutional investors. Comparatively, 47.2% of Full House Resorts shares are owned by institutional investors. 0.4% of MGM Resorts International shares are owned by insiders. Comparatively, 15.7% of Full House Resorts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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, Full House Resorts has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.
This table compares MGM Resorts International and Full House Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MGM Resorts International||17.11%||5.07%||1.92%|
|Full House Resorts||-4.88%||-9.11%||-2.89%|
MGM Resorts International pays an annual dividend of $0.48 per share and has a dividend yield of 1.8%. Full House Resorts does not pay a dividend. MGM Resorts International pays out 47.1% of its earnings in the form of a dividend.
MGM Resorts International beats Full House Resorts on 12 of the 16 factors compared between the two stocks.
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.
About Full House Resorts
Full House Resorts, Inc. owns, operates, develops, manages, leases, and/or invests in casinos, and related hospitality and entertainment facilities in the United States. The company owns and operates the Silver Slipper Casino and Hotel in Hancock County, Mississippi, which has approximately 37,000 square feet of gaming space, a surface parking lot, approximately 800-space parking garage, and 129-rooms, as well as a fine-dining restaurant, a buffet, a quick-service restaurant, and oyster and casino bars. It also owns and operates the Bronco Billy's Casino and Hotel in Cripple Creek, Colorado that has approximately 17,000 square feet of gaming space, 24 hotel rooms, and various acres of surface parking, as well as steakhouse, and 4 casual-dining outlets. In addition, the company owns the Rising Star Casino Resort in Rising Sun, Indiana, which has approximately 40,000 square feet of gaming space; a land-based pavilion with approximately 30,000 square feet of meeting and convention space; a 190-room hotel; surface parking; an 18-hole golf course on approximately 311 acres; and 5 dining outlets, as well as a leased 104-room hotel. Further, it owns Stockman's Casino that is located in Fallon, Nevada, which has approximately 8,400 square feet of gaming space, a bar, a fine-dining restaurant, and a coffee shop; and Grand Lodge Casino that has 18,900 square feet of gaming space, which is integrated into the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada on the north shore of Lake Tahoe. Full House Resorts, Inc. was founded in 1987 and is headquartered in Las Vegas, Nevada.
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