Comparing Archon (OTCMKTS:ARHN) and Las Vegas Sands (NYSE:LVS)

Las Vegas Sands (NYSE:LVS) and Archon (OTCMKTS:ARHN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

39.2% of Las Vegas Sands shares are held by institutional investors. 0.5% of Las Vegas Sands shares are held by insiders. Comparatively, 80.0% of Archon shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Las Vegas Sands and Archon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Las Vegas Sands	0	7	11	0	2.61
Archon	0	0	0	0	0.00

Las Vegas Sands presently has a consensus target price of $65.31, suggesting a potential upside of 43.78%. Given Las Vegas Sands’ stronger consensus rating and higher possible upside, equities analysts plainly believe Las Vegas Sands is more favorable than Archon.

Risk & Volatility

Las Vegas Sands has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Archon has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.

Valuation and Earnings

This table compares Las Vegas Sands and Archon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Las Vegas Sands	$13.74 billion	2.19	$1.63 billion	$2.70	16.82
Archon	N/A	N/A	N/A	N/A	N/A

Las Vegas Sands has higher revenue and earnings than Archon.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Las Vegas Sands	13.41%	118.27%	10.52%
Archon	N/A	N/A	N/A

Summary

Las Vegas Sands beats Archon on 9 of the 10 factors compared between the two stocks.

About Las Vegas Sands

Las Vegas Sands Corp., together with its subsidiaries, develops, owns, and operates integrated resorts in Macao and Singapore. It owns and operates The Venetian Macao Resort Hotel, the Londoner Macao, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People’s Republic of China; and Marina Bay Sands in Singapore. The company’s integrated resorts feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada.

About Archon

Archon Corporation, through its subsidiary, Pioneer Hotel Inc., engages in the ownership, management, and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada that consists of a casino. The company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties that include commercial office space in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.