Financial Contrast: Las Vegas Sands (NYSE:LVS) vs. Universal Entertainment (OTCMKTS:UETMF)

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

Volatility and Risk

Las Vegas Sands has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Universal Entertainment has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Las Vegas Sands	12.16%	55.37%	7.89%
Universal Entertainment	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Las Vegas Sands and Universal Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Las Vegas Sands	0	5	10	1	2.75
Universal Entertainment	0	0	0	0	0.00

Las Vegas Sands currently has a consensus target price of $58.1333, indicating a potential upside of 10.94%. Given Las Vegas Sands’ stronger consensus rating and higher probable upside, analysts plainly believe Las Vegas Sands is more favorable than Universal Entertainment.

Institutional & Insider Ownership

39.2% of Las Vegas Sands shares are owned by institutional investors. 1.2% of Las Vegas Sands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Las Vegas Sands and Universal Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Las Vegas Sands	$11.30 billion	3.18	$1.45 billion	$1.98	26.46
Universal Entertainment	$1.28 billion	0.44	$201.92 million	($1.28)	-5.63

Las Vegas Sands has higher revenue and earnings than Universal Entertainment. Universal Entertainment is trading at a lower price-to-earnings ratio than Las Vegas Sands, indicating that it is currently the more affordable of the two stocks.

Summary

Las Vegas Sands beats Universal Entertainment on 15 of the 15 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 Universal Entertainment

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.