Analyzing Crown Resorts (OTCMKTS:CWLDF) and MGM Resorts International (NYSE:MGM)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MGM Resorts International and Crown Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	0	2	12	0	2.86
Crown Resorts	0	0	0	0	N/A

MGM Resorts International currently has a consensus target price of $54.83, suggesting a potential upside of 38.05%. Given MGM Resorts International’s higher possible upside, equities research analysts clearly believe MGM Resorts International is more favorable than Crown Resorts.

Institutional & Insider Ownership

68.1% of MGM Resorts International shares are held by institutional investors. 2.1% of MGM Resorts International shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	5.35%	23.62%	2.45%
Crown Resorts	N/A	N/A	N/A

Valuation and Earnings

This table compares MGM Resorts International and Crown Resorts’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGM Resorts International	$16.67 billion	0.75	$1.14 billion	$2.60	15.28
Crown Resorts	N/A	N/A	N/A	N/A	N/A

MGM Resorts International has higher revenue and earnings than Crown Resorts.

Summary

MGM Resorts International beats Crown Resorts on 8 of the 8 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 Crown Resorts

Crown Resorts Limited operates in the entertainment industry primarily in Australia. It operates through four segments: Crown Melbourne, Crown Perth, Crown Aspinalls, and Wagering & Online. The company owns and operates two integrated resorts, including Crown Melbourne and Crown Perth. Its Crown Melbourne resort comprises 2,628 gaming machines and 540 gaming tables; the Crown Towers Melbourne hotel with 481 guest rooms, the Crown Metropol Melbourne hotel with 658 guest rooms, and the Crown Promenade Melbourne hotel with 465 guest rooms; a conference center; banqueting facilities; restaurants and bars; and designer brands and retail outlets. The company's Crown Perth resort includes the Crown Towers Perth hotel with 500 guest rooms; the Crown Metropol Perth hotel comprising 397 guest rooms; the Crown Promenade Perth hotel with 291 guest rooms; 2,500 gaming machines and 350 gaming tables; a 1,500-seat Crown Ballroom and 2,300-seat Crown Theatre; convention facilities; and restaurants and bars, and a resort. It also owns and operates the Crown Aspinalls, a casino in London; and engages in wagering and online social gaming activities. The company was formerly known as Crown Limited and changed its name to Crown Resorts Limited in October 2013. Crown Resorts Limited was incorporated in 2007 and is based in Southbank, Australia.