Analyzing MGM China (MCHVY) & Its Peers

Insider and Institutional Ownership

0.0% of MGM China shares are held by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 21.9% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares MGM China and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MGM China	N/A	N/A	0.73
MGM China Competitors	$3.33 billion	$246.76 million	6.18

MGM China’s competitors have higher revenue and earnings than MGM China. MGM China is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares MGM China and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGM China	N/A	N/A	N/A
MGM China Competitors	-11.37%	-36.03%	1.99%

Dividends

MGM China pays an annual dividend of $17.07 per share and has a dividend yield of 125.9%. MGM China pays out 91.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.4% and pay out 44.6% of their earnings in the form of a dividend.

Summary

MGM China competitors beat MGM China on 6 of the 9 factors compared.

About MGM China

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.