Critical Analysis: MGM Growth Properties (MGP) & Its Rivals
MGM Growth Properties (NYSE: MGP) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it weigh in compared to its competitors? We will compare MGM Growth Properties to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.
Insider and Institutional Ownership
86.7% of MGM Growth Properties shares are owned by institutional investors. Comparatively, 77.4% of shares of all “Hospitality REITs” companies are owned by institutional investors. 0.6% of MGM Growth Properties shares are owned by company insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
MGM Growth Properties pays an annual dividend of $1.58 per share and has a dividend yield of 5.3%. MGM Growth Properties pays out 205.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hospitality REITs” companies pay a dividend yield of 5.2% and pay out 132.6% of their earnings in the form of a dividend.
Valuation and Earnings
This table compares MGM Growth Properties and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|MGM Growth Properties||$725.00 million||$613.53 million||38.57|
|MGM Growth Properties Competitors||$1.09 billion||$355.81 million||-15.70|
MGM Growth Properties’ competitors have higher revenue, but lower earnings than MGM Growth Properties. MGM Growth Properties is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
MGM Growth Properties has a beta of -1.34, indicating that its stock price is 234% less volatile than the S&P 500. Comparatively, MGM Growth Properties’ competitors have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for MGM Growth Properties and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MGM Growth Properties||0||1||4||0||2.80|
|MGM Growth Properties Competitors||111||745||857||21||2.45|
MGM Growth Properties currently has a consensus price target of $31.20, indicating a potential upside of 5.05%. As a group, “Hospitality REITs” companies have a potential upside of 5.48%. Given MGM Growth Properties’ competitors higher possible upside, analysts clearly believe MGM Growth Properties has less favorable growth aspects than its competitors.
This table compares MGM Growth Properties and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MGM Growth Properties||6.21%||0.81%||0.48%|
|MGM Growth Properties Competitors||5.91%||1.62%||1.63%|
MGM Growth Properties competitors beat MGM Growth Properties on 8 of the 15 factors compared.
MGM Growth Properties Company Profile
MGM Growth Properties LLC is a real estate investment trust engaged in the acquisition, ownership and leasing of destination entertainment and leisure resorts, whose amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. Its portfolio consists of approximately 10 destination resorts. It has over six entertainment and gaming-related properties located on the Las Vegas Strip, including Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor and Excalibur, and The Park, a dining and entertainment complex located between New York-New York and Monte Carlo. Outside of Las Vegas, it owns over four casino resort properties, including MGM Grand Detroit in Detroit, Michigan, Borgata Hotel Casino & Spa in Atlantic City, New Jersey, and Beau Rivage and Gold Strike Tunica, both of which are located in Mississippi. It operates approximately 27,330 hotel rooms, over 200 restaurants, approximately 100 retail outlets and over 20 entertainment venues.
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