Ameristar Casinos (NASDAQ: ASCA) and Wynn Resorts (NASDAQ:WYNN) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

Wynn Resorts pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. Ameristar Casinos does not pay a dividend. Wynn Resorts pays out 55.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

72.0% of Wynn Resorts shares are held by institutional investors. 13.2% of Wynn Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Ameristar Casinos and Wynn Resorts’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ameristar Casinos N/A N/A N/A $1.60 N/A
Wynn Resorts $4.47 billion 3.64 $241.97 million $3.62 43.67

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

Profitability

This table compares Ameristar Casinos and Wynn Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ameristar Casinos N/A N/A N/A
Wynn Resorts 6.24% 132.96% 3.78%

Risk and Volatility

Ameristar Casinos has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Wynn Resorts has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Ameristar Casinos and Wynn Resorts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ameristar Casinos 0 0 0 0 N/A
Wynn Resorts 0 10 9 0 2.47

Wynn Resorts has a consensus target price of $145.65, suggesting a potential downside of 7.85%.

Summary

Wynn Resorts beats Ameristar Casinos on 10 of the 11 factors compared between the two stocks.

About Ameristar Casinos

Ameristar Casinos, Inc.(Ameristar), is a developer, owner and operator of casino entertainment facilities in local and regional markets. The Company has eight properties in seven markets. Its portfolio of casinos consists of: Ameristar Casino Resort Spa St. Charles (serving the St. Louis, Missouri metropolitan area); Ameristar Casino Hotel Kansas City (serving the Kansas City metropolitan area); Ameristar Casino Hotel Council Bluffs (serving Omaha, Nebraska and southwestern Iowa); Ameristar Casino Resort Spa Black Hawk (serving the Denver metropolitan area); Ameristar Casino Hotel Vicksburg (serving Jackson, Mississippi and Monroe, Louisiana); Ameristar Casino Hotel East Chicago (serving the Chicagoland area); and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot, Nevada (serving Idaho and the Pacific Northwest). In August 2013, Pinnacle Entertainment Inc completed the acquisition of Ameristar Casinos, Inc.

About Wynn Resorts

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.

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