Caesars Acquisition (NASDAQ: CACQ) and Las Vegas Sands Corp. (NYSE:LVS) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Caesars Acquisition and Las Vegas Sands Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caesars Acquisition N/A 35.74% 32.50%
Las Vegas Sands Corp. 16.66% 29.91% 10.65%

Dividends

Las Vegas Sands Corp. pays an annual dividend of $2.92 per share and has a dividend yield of 4.5%. Caesars Acquisition does not pay 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. Caesars Acquisition has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Caesars Acquisition and Las Vegas Sands Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Acquisition 0 0 0 0 N/A
Las Vegas Sands Corp. 0 7 9 0 2.56

Las Vegas Sands Corp. has a consensus target price of $64.09, indicating a potential downside of 1.49%. Given Las Vegas Sands Corp.’s higher possible upside, analysts plainly believe Las Vegas Sands Corp. is more favorable than Caesars Acquisition.

Valuation & Earnings

This table compares Caesars Acquisition and Las Vegas Sands Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Caesars Acquisition N/A N/A N/A $4.34 5.01
Las Vegas Sands Corp. $12.29 billion 4.19 $4.37 billion $2.58 25.22

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

Insider & Institutional Ownership

56.5% of Caesars Acquisition shares are owned by institutional investors. Comparatively, 38.0% of Las Vegas Sands Corp. shares are owned by institutional investors. 0.2% of Caesars Acquisition 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Caesars Acquisition has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Las Vegas Sands Corp. has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Summary

Las Vegas Sands Corp. beats Caesars Acquisition on 8 of the 14 factors compared between the two stocks.

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.

Las Vegas Sands Corp. Company Profile

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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