Critical Comparison: Wynn Resorts (WYNN) and Ameristar Casinos (ASCA)
Wynn Resorts (NASDAQ: WYNN) and Ameristar Casinos (NASDAQ:ASCA) are both cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Wynn Resorts pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. Ameristar Casinos does not pay a dividend. Wynn Resorts pays out 55.4% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Wynn Resorts and Ameristar Casinos’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wynn Resorts||$4.47 billion||3.66||$241.97 million||$3.61||44.02|
Wynn Resorts has higher revenue and earnings than Ameristar Casinos. Ameristar Casinos is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.
This table compares Wynn Resorts and Ameristar Casinos’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Wynn Resorts and Ameristar Casinos, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Wynn Resorts presently has a consensus price target of $145.65, indicating a potential downside of 8.35%.
Institutional & Insider Ownership
72.0% of Wynn Resorts shares are held by institutional investors. 13.2% of Wynn Resorts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Wynn Resorts has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Ameristar Casinos has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Wynn Resorts beats Ameristar Casinos on 10 of the 11 factors compared between the two stocks.
Wynn Resorts Company Profile
Wynn Resorts, Limited (Wynn Resorts) is a developer, owner and operator of destination casino resorts that integrate accommodations and a range of amenities, including dining outlets, retail offerings, entertainment theaters and meeting complexes. The Company’s segments include Macau Operations and Las Vegas Operations. The Company’s Macau Operations include Wynn Macau and Wynn Palace. It also includes Encore, an expansion at Wynn Macau. The Company’s Las Vegas Operations include Wynn Las Vegas and Encore, an expansion at Wynn Las Vegas. Wynn Las Vegas is located at the intersection of the Las Vegas Strip and Sands Avenue. As of December 31, 2016, it occupied approximately 215 acres of land fronting the Las Vegas Strip. As of December 31, 2016, the Company owned approximately 18 acres across Sands Avenue. The Company is constructing Wynn Boston Harbor, an integrated casino resort in Everett, Massachusetts.
Ameristar Casinos Company Profile
Ameristar Casinos, Inc.(Ameristar), is a developer, owner and operator of casino entertainment facilities in local and regional markets. The Company has eight properties in seven markets. Its portfolio of casinos consists of: Ameristar Casino Resort Spa St. Charles (serving the St. Louis, Missouri metropolitan area); Ameristar Casino Hotel Kansas City (serving the Kansas City metropolitan area); Ameristar Casino Hotel Council Bluffs (serving Omaha, Nebraska and southwestern Iowa); Ameristar Casino Resort Spa Black Hawk (serving the Denver metropolitan area); Ameristar Casino Hotel Vicksburg (serving Jackson, Mississippi and Monroe, Louisiana); Ameristar Casino Hotel East Chicago (serving the Chicagoland area); and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot, Nevada (serving Idaho and the Pacific Northwest). In August 2013, Pinnacle Entertainment Inc completed the acquisition of Ameristar Casinos, Inc.
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