MGM Resorts International (NYSE:MGM – Get Free Report) and Wingstop (NASDAQ:WING – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Valuation and Earnings
This table compares MGM Resorts International and Wingstop”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGM Resorts International | $17.54 billion | 0.41 | $205.86 million | $1.65 | 17.24 |
| Wingstop | $696.85 million | 5.19 | $174.27 million | $4.21 | 31.53 |
MGM Resorts International has higher revenue and earnings than Wingstop. MGM Resorts International is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
MGM Resorts International has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Wingstop has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.
Profitability
This table compares MGM Resorts International and Wingstop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MGM Resorts International | 2.40% | 23.30% | 1.90% |
| Wingstop | 16.15% | -16.31% | 18.05% |
Analyst Ratings
This is a summary of current recommendations and price targets for MGM Resorts International and Wingstop, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MGM Resorts International | 3 | 8 | 9 | 2 | 2.45 |
| Wingstop | 1 | 5 | 21 | 2 | 2.83 |
MGM Resorts International presently has a consensus target price of $48.47, suggesting a potential upside of 70.42%. Wingstop has a consensus target price of $233.74, suggesting a potential upside of 76.08%. Given Wingstop’s stronger consensus rating and higher possible upside, analysts clearly believe Wingstop is more favorable than MGM Resorts International.
Insider and Institutional Ownership
68.1% of MGM Resorts International shares are owned by institutional investors. 3.4% of MGM Resorts International shares are owned by insiders. Comparatively, 0.5% of Wingstop shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Wingstop beats MGM Resorts International on 9 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 Wingstop
Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.
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