MGM Growth Properties (NYSE: MGP) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it compare to its peers? We will compare MGM Growth Properties to related companies based on the strength of its dividends, profitability, institutional ownership, earnings, analyst recommendations, risk and valuation.

Institutional and Insider Ownership

86.5% of MGM Growth Properties shares are held by institutional investors. Comparatively, 78.8% of shares of all “Hospitality REITs” companies are held by institutional investors. 0.6% of MGM Growth Properties shares are held by company insiders. Comparatively, 5.2% of shares of all “Hospitality REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares MGM Growth Properties and its peers’ 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 5.39% 1.14% 1.47%

Analyst Recommendations

This is a summary of recent ratings for MGM Growth Properties and its peers, as provided 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 113 756 861 21 2.45

MGM Growth Properties presently has a consensus price target of $31.20, suggesting a potential upside of 7.40%. As a group, “Hospitality REITs” companies have a potential upside of 7.57%. Given MGM Growth Properties’ peers higher possible upside, analysts clearly believe MGM Growth Properties has less favorable growth aspects than its peers.

Volatility & Risk

MGM Growth Properties has a beta of -1.34, indicating that its share price is 234% less volatile than the S&P 500. Comparatively, MGM Growth Properties’ peers have a beta of 1.01, indicating that their average share price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares MGM Growth Properties and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MGM Growth Properties $725.00 million $613.53 million 37.73
MGM Growth Properties Competitors $1.09 billion $355.81 million -14.95

MGM Growth Properties’ peers have higher revenue, but lower earnings than MGM Growth Properties. MGM Growth Properties is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

MGM Growth Properties pays an annual dividend of $1.58 per share and has a dividend yield of 5.4%. 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 5.3% and pay out 142.3% of their earnings in the form of a dividend.

Summary

MGM Growth Properties peers 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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