Archon (OTCMKTS:ARHN) and Vail Resorts (NYSE:MTN) Critical Comparison

Vail Resorts (NYSE:MTNGet Rating) and Archon (OTCMKTS:ARHNGet Rating) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

This table compares Vail Resorts and Archon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vail Resorts 13.77% 18.88% 5.48%
Archon N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings for Vail Resorts and Archon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vail Resorts 1 5 2 0 2.13
Archon 0 0 0 0 N/A

Vail Resorts presently has a consensus target price of $285.57, indicating a potential upside of 17.35%. Given Vail Resorts’ higher probable upside, research analysts clearly believe Vail Resorts is more favorable than Archon.

Valuation and Earnings

This table compares Vail Resorts and Archon’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vail Resorts $2.53 billion 3.88 $347.92 million $8.49 28.66
Archon N/A N/A N/A N/A N/A

Vail Resorts has higher revenue and earnings than Archon.

Institutional & Insider Ownership

93.1% of Vail Resorts shares are held by institutional investors. 1.2% of Vail Resorts shares are held by insiders. Comparatively, 80.0% of Archon shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Vail Resorts beats Archon on 7 of the 8 factors compared between the two stocks.

About Vail Resorts

(Get Rating)

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums, and other lodging properties under the RockResorts brand; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.

About Archon

(Get Rating)

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 casino, as well as 416 motel rooms. As of September 30, 2010, the Pioneer had approximately 686 slot machines, 6 blackjack tables, 1 craps table, 1 roulette wheel, and 5 other gaming tables. 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.

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