Wynn Resorts, Limited (NASDAQ: WYNN) and Caesars Acquisition (NASDAQ:CACQ) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitabiliy, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares Wynn Resorts, Limited and Caesars Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wynn Resorts, Limited 5.41% 264.58% 3.20%
Caesars Acquisition N/A 40.09% 36.19%

Valuation and Earnings

This table compares Wynn Resorts, Limited and Caesars Acquisition’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Wynn Resorts, Limited $4.94 billion 2.74 $1.10 billion $2.63 50.63
Caesars Acquisition N/A N/A N/A $4.42 4.59

Wynn Resorts, Limited has higher revenue and earnings than Caesars Acquisition. Caesars Acquisition is trading at a lower price-to-earnings ratio than Wynn Resorts, Limited, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

75.3% of Wynn Resorts, Limited shares are owned by institutional investors. Comparatively, 52.2% of Caesars Acquisition shares are owned by institutional investors. 13.2% of Wynn Resorts, Limited shares are owned by insiders. Comparatively, 0.2% of Caesars Acquisition shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Wynn Resorts, Limited and Caesars Acquisition, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wynn Resorts, Limited 0 9 11 0 2.55
Caesars Acquisition 0 0 0 0 N/A

Wynn Resorts, Limited presently has a consensus price target of $123.23, suggesting a potential downside of 7.46%. Given Wynn Resorts, Limited’s higher possible upside, equities analysts clearly believe Wynn Resorts, Limited is more favorable than Caesars Acquisition.

Volatility and Risk

Wynn Resorts, Limited has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Caesars Acquisition has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Dividends

Wynn Resorts, Limited pays an annual dividend of $2.00 per share and has a dividend yield of 1.5%. Caesars Acquisition does not pay a dividend. Wynn Resorts, Limited pays out 76.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Wynn Resorts, Limited beats Caesars Acquisition on 10 of the 13 factors compared between the two stocks.

Wynn Resorts, Limited 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.

Caesars Acquisition Company Profile

Caesars Acquisition Company (CAC) owns voting membership units of Caesars Growth Partners, LLC (CGP LLC), a joint venture between CAC and subsidiaries of Caesars Entertainment Corporation (CEC or Caesars Entertainment). CAC serves as CGP LLC’s managing member and sole holder of its outstanding voting units. CGP LLC is a casino asset and entertainment company. Through its relationship with Caesars Entertainment, CGP LLC has the ability to access Caesars Entertainment’s management know-how, brand equity, Total Rewards loyalty program and structural synergies. As of December 31, 2016, CGP LLC’s Interactive Entertainment business consisted of two operating units: The World Series of Poker (WSOP) and regulated online real money gaming (RMG). CGP LLC’s casino properties and developments include Planet Hollywood Resort & Casino in Las Vegas (Planet Hollywood), The LINQ Hotel & Casino, Bally’s Las Vegas, The Cromwell, Horseshoe Baltimore Casino (Horseshoe Baltimore) and Harrah’s New Orleans.

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