Critical Comparison: Wynn Resorts, Limited (WYNN) & Las Vegas Sands Corp. (LVS)
Wynn Resorts, Limited (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE:LVS) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Risk & Volatility
Wynn Resorts, Limited has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Las Vegas Sands Corp. has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Wynn Resorts, Limited and Las Vegas Sands Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wynn Resorts, Limited||0||11||9||0||2.45|
|Las Vegas Sands Corp.||0||7||10||0||2.59|
Wynn Resorts, Limited presently has a consensus target price of $126.57, indicating a potential downside of 7.24%. Las Vegas Sands Corp. has a consensus target price of $64.15, indicating a potential upside of 4.25%. Given Las Vegas Sands Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe Las Vegas Sands Corp. is more favorable than Wynn Resorts, Limited.
Earnings and Valuation
This table compares Wynn Resorts, Limited and Las Vegas Sands Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Wynn Resorts, Limited||$5.42 billion||2.57||$1.25 billion||$2.67||51.10|
|Las Vegas Sands Corp.||$12.29 billion||3.96||$4.37 billion||$2.58||23.85|
Las Vegas Sands Corp. has higher revenue and earnings than Wynn Resorts, Limited. Las Vegas Sands Corp. 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
72.8% of Wynn Resorts, Limited shares are owned by institutional investors. Comparatively, 38.5% of Las Vegas Sands Corp. shares are owned by institutional investors. 13.2% of Wynn Resorts, Limited shares are owned by insiders. Comparatively, 10.1% of Las Vegas Sands Corp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Wynn Resorts, Limited and Las Vegas Sands Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wynn Resorts, Limited||5.02%||165.77%||3.22%|
|Las Vegas Sands Corp.||16.66%||29.91%||10.65%|
Wynn Resorts, Limited pays an annual dividend of $2.00 per share and has a dividend yield of 1.5%. Las Vegas Sands Corp. pays an annual dividend of $2.92 per share and has a dividend yield of 4.7%. Wynn Resorts, Limited pays out 74.9% of its earnings in the form of a dividend. Las Vegas Sands Corp. pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wynn Resorts, Limited has increased its dividend for 4 consecutive years.
Las Vegas Sands Corp. beats Wynn Resorts, Limited on 10 of the 17 factors compared between the two stocks.
About Wynn Resorts, Limited
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.
About Las Vegas Sands Corp.
Las Vegas Sands Corp. is a developer of destination properties (integrated resorts) that feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company owns and operates integrated resorts in Asia and the United States. The Company’s principal operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States. In Macao, the Company’s segments include The Venetian Macao; Sands Cotai Central; The Parisian Macao; Four Seasons Macao; Sands Macao, and Other Asia (comprises the Company’s ferry operations and various other operations). In Singapore, the Company’s segments include Marina Bay Sands. In the United States, the Company’s segments include Las Vegas Operating Properties and Sands Bethlehem. The Company also offers players club loyalty programs at its properties, which provides access to rewards, privileges and members-only events.
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