MGM Resorts International (NYSE:MGM – Get Free Report) and Life Time Group (NYSE:LTH – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Volatility and Risk
MGM Resorts International has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for MGM Resorts International and Life Time Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MGM Resorts International | 3 | 8 | 9 | 2 | 2.45 |
| Life Time Group | 0 | 1 | 15 | 0 | 2.94 |
MGM Resorts International currently has a consensus target price of $44.29, suggesting a potential upside of 37.03%. Life Time Group has a consensus target price of $56.14, suggesting a potential upside of 18.23%. Given MGM Resorts International’s higher probable upside, analysts plainly believe MGM Resorts International is more favorable than Life Time Group.
Profitability
This table compares MGM Resorts International and Life Time Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MGM Resorts International | 3.92% | 20.58% | 1.69% |
| Life Time Group | 12.72% | 11.01% | 4.36% |
Valuation & Earnings
This table compares MGM Resorts International and Life Time Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGM Resorts International | $17.54 billion | 0.47 | $205.86 million | $2.63 | 12.29 |
| Life Time Group | $3.29 billion | 3.24 | $373.67 million | $1.84 | 25.81 |
Life Time Group has lower revenue, but higher earnings than MGM Resorts International. MGM Resorts International is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.1% of MGM Resorts International shares are owned by institutional investors. Comparatively, 79.4% of Life Time Group shares are owned by institutional investors. 3.4% of MGM Resorts International shares are owned by insiders. Comparatively, 13.3% of Life Time Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Life Time Group beats MGM Resorts International on 10 of the 15 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 Life Time Group
Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.
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