Head-To-Head Comparison: MGM China (OTCMKTS:MCHVY) versus Century Casinos (NASDAQ:CNTY)

Century Casinos (NASDAQ:CNTY) and MGM China (OTCMKTS:MCHVY) are both consumer cyclical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Institutional and Insider Ownership

71.5% of Century Casinos shares are held by institutional investors. Comparatively, 0.0% of MGM China shares are held by institutional investors. 14.0% of Century Casinos shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Century Casinos and MGM China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Century Casinos	-0.93%	-2.43%	-0.47%
MGM China	N/A	N/A	N/A

Valuation & Earnings

This table compares Century Casinos and MGM China’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Casinos	$461.57 million	0.43	$7.98 million	($0.15)	-43.73
MGM China	N/A	N/A	N/A	$18.58	0.81

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Century Casinos and MGM China, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Casinos	0	0	2	0	3.00
MGM China	0	0	0	0	N/A

Century Casinos presently has a consensus price target of $12.00, suggesting a potential upside of 82.93%. Given Century Casinos’ higher possible upside, research analysts clearly believe Century Casinos is more favorable than MGM China.

About Century Casinos

Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. The company develops and operates gaming establishments, as well as related lodging, restaurant, and horse racing including, off-track betting; and entertainment facilities. Century Casinos, Inc. was founded in 1992 and is based in Colorado Springs, Colorado.

About MGM China

MGM China Holdings Limited, an investment holding company, engages in the development, ownership, and operation of gaming and lodging resorts in the Greater China region. The company develops and operates casino games of chance and other casino games, and related hotel and resort facilities, as well as provides hotel management services; and develops integrated resorts in Macau. It owns and operates MGM Macau, an integrated resort that includes a casino with 926 slot machines and 294 gaming tables, multiple VIP, and private gaming areas; a hotel with 585 hotel rooms, suites, and villas; and amenities, including 8 restaurants, retail outlets, pool, and spa facilities, as well as a convention space. The company also owns MGM Cotai, a resort that consists of a casino with 934 slot machines and 258 gaming tables; a hotel with 1,418 hotel rooms, suites, and skylofts; 12 restaurants and bars; retail outlets; and a meeting space, as well as other non-gaming offerings. In addition, MGM China Holdings Limited is involved in the provision of outsourcing services, including information technology, accounting, human resources, hotel reservation, and convention consultation. The company was incorporated in 2010 and is headquartered in Macau. MGM China Holdings Limited is a subsidiary of MGM Resorts International Holdings, Ltd.