Head-To-Head Review: MGM Resorts International (NYSE:MGM) & Take-Two Interactive Software (NASDAQ:TTWO)

MGM Resorts International (NYSE:MGM) and Take-Two Interactive Software (NASDAQ:TTWO) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

68.1% of MGM Resorts International shares are owned by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are owned by institutional investors. 3.4% of MGM Resorts International shares are owned by insiders. Comparatively, 1.3% of Take-Two Interactive Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares MGM Resorts International and Take-Two Interactive Software”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	$17.54 billion	0.71	$205.86 million	$0.72	67.49
Take-Two Interactive Software	$6.66 billion	6.03	-$298.20 million	($1.62)	-133.37

MGM Resorts International has higher revenue and earnings than Take-Two Interactive Software. Take-Two Interactive Software 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MGM Resorts International and Take-Two Interactive Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	4	7	10	1	2.36
Take-Two Interactive Software	1	2	15	1	2.84

MGM Resorts International presently has a consensus price target of $50.18, indicating a potential upside of 3.27%. Take-Two Interactive Software has a consensus price target of $287.06, indicating a potential upside of 32.86%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, analysts plainly believe Take-Two Interactive Software is more favorable than MGM Resorts International.

Risk & Volatility

MGM Resorts International has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares MGM Resorts International and Take-Two Interactive Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	1.03%	24.43%	2.02%
Take-Two Interactive Software	-4.48%	14.68%	5.22%

Summary

MGM Resorts International beats Take-Two Interactive Software on 8 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 Take-Two Interactive Software

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.