Light & Wonder (NASDAQ:LNW) and MGM Resorts International (NYSE:MGM) Head to Head Survey

Light & Wonder (NASDAQ:LNW) and MGM Resorts International (NYSE:MGM) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares Light & Wonder and MGM Resorts International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Light & Wonder	$3.19 billion	2.59	$336.00 million	$3.75	26.10
MGM Resorts International	$17.24 billion	0.59	$746.56 million	$2.24	16.69

MGM Resorts International has higher revenue and earnings than Light & Wonder. MGM Resorts International is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Light & Wonder has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, MGM Resorts International has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Institutional & Insider Ownership

88.1% of Light & Wonder shares are owned by institutional investors. Comparatively, 68.1% of MGM Resorts International shares are owned by institutional investors. 2.2% of Light & Wonder shares are owned by company insiders. Comparatively, 3.1% of MGM Resorts International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Light & Wonder and MGM Resorts International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Light & Wonder	10.45%	68.41%	9.01%
MGM Resorts International	3.95%	20.64%	1.82%

Analyst Recommendations

This is a summary of current ratings and target prices for Light & Wonder and MGM Resorts International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Light & Wonder	1	3	8	2	2.79
MGM Resorts International	2	7	14	1	2.58

Light & Wonder currently has a consensus target price of $108.36, suggesting a potential upside of 10.72%. MGM Resorts International has a consensus target price of $48.56, suggesting a potential upside of 29.87%. Given MGM Resorts International’s higher probable upside, analysts plainly believe MGM Resorts International is more favorable than Light & Wonder.

Summary

Light & Wonder beats MGM Resorts International on 9 of the 15 factors compared between the two stocks.

About Light & Wonder

Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.