MGM Resorts International (NYSE:MGM – Get Free Report) and Playtika (NASDAQ:PLTK – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Insider & Institutional Ownership
68.1% of MGM Resorts International shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 3.1% of MGM Resorts International shares are held by company insiders. Comparatively, 5.1% of Playtika shares are held by company 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.
Profitability
This table compares MGM Resorts International and Playtika’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MGM Resorts International | 0.40% | 17.23% | 1.48% |
| Playtika | 3.16% | -114.44% | 3.23% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MGM Resorts International | 3 | 10 | 11 | 0 | 2.33 |
| Playtika | 1 | 5 | 3 | 0 | 2.22 |
MGM Resorts International presently has a consensus price target of $44.91, indicating a potential upside of 30.46%. Playtika has a consensus price target of $6.00, indicating a potential upside of 65.75%. Given Playtika’s higher possible upside, analysts plainly believe Playtika is more favorable than MGM Resorts International.
Valuation & Earnings
This table compares MGM Resorts International and Playtika”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGM Resorts International | $17.24 billion | 0.55 | $746.56 million | $0.16 | 215.16 |
| Playtika | $2.55 billion | 0.53 | $162.20 million | $0.24 | 15.08 |
MGM Resorts International has higher revenue and earnings than Playtika. Playtika is trading at a lower price-to-earnings ratio than MGM Resorts International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
MGM Resorts International has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Summary
MGM Resorts International beats Playtika 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 Playtika
Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.
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