Wynn Resorts (NASDAQ:WYNN) versus MGM China (OTCMKTS:MCHVF) Head-To-Head Comparison

Wynn Resorts (NASDAQ:WYNNGet Free Report) and MGM China (OTCMKTS:MCHVFGet Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Dividends

Wynn Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. MGM China pays an annual dividend of $0.49 per share and has a dividend yield of 27.2%. Wynn Resorts pays out 13.7% of its earnings in the form of a dividend. MGM China pays out 31.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Wynn Resorts and MGM China’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wynn Resorts $6.53 billion 1.59 $729.99 million $7.30 12.73
MGM China N/A N/A N/A $1.55 1.16

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

Profitability

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

Net Margins Return on Equity Return on Assets
Wynn Resorts 12.36% -46.04% 4.44%
MGM China N/A N/A N/A

Institutional & Insider Ownership

68.9% of Wynn Resorts shares are held by institutional investors. Comparatively, 9.1% of MGM China shares are held by institutional investors. 0.5% of Wynn Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Wynn Resorts and MGM China, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wynn Resorts 0 4 10 1 2.80
MGM China 0 0 2 0 3.00

Wynn Resorts presently has a consensus price target of $120.79, suggesting a potential upside of 29.99%. Given Wynn Resorts’ higher possible upside, equities analysts plainly believe Wynn Resorts is more favorable than MGM China.

Summary

Wynn Resorts beats MGM China on 11 of the 14 factors compared between the two stocks.

About Wynn Resorts

(Get Free Report)

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.

About MGM China

(Get Free Report)

MGM China Holdings Limited, an investment holding company, engages in the development, ownership, and operation of gaming and lodging resorts in the Greater China region. The company develops and operates casino games of chance and other casino games, and related hotel and resort facilities, as well as provides hotel management services; and develops integrated resorts in Macau. It owns and operates MGM Macau, an integrated resort that includes a casino with slot machines, gaming tables, multiple VIP, and private gaming areas; a hotel with rooms, suites, and villas; and amenities, including restaurants, retail outlets, pool, and spa facilities, as well as a convention space. The company also owns MGM Cotai, a resort that consists of a casino with slot machines and gaming tables; hotel with rooms, suites, and skylofts; restaurants and bars; retail outlets; and meeting space, as well as other non-gaming offerings. In addition, it is involved in the provision of outsourcing services, including information technology, accounting, human resources, hotel reservation, and convention consultation. The company was incorporated in 2010 and is headquartered in Macau. MGM China Holdings Limited operates as a subsidiary of MGM Resorts International Holdings, Ltd.

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