Head-To-Head Survey: MGM Resorts International (NYSE:MGM) vs. GameStop (NYSE:GME)

MGM Resorts International (NYSE:MGM) and GameStop (NYSE:GME) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Earnings & Valuation

This table compares MGM Resorts International and GameStop”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGM Resorts International	$17.54 billion	0.54	$205.86 million	$0.75	49.73
GameStop	$3.63 billion	2.87	$418.40 million	$0.75	30.95

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

Risk & Volatility

MGM Resorts International has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, GameStop has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	1.17%	26.04%	2.19%
GameStop	11.53%	12.47%	6.73%

Analyst Ratings

This is a breakdown of current ratings for MGM Resorts International and GameStop, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	4	7	8	1	2.30
GameStop	1	1	0	0	1.50

MGM Resorts International currently has a consensus price target of $42.00, indicating a potential upside of 12.60%. GameStop has a consensus price target of $13.50, indicating a potential downside of 41.85%. Given MGM Resorts International’s stronger consensus rating and higher probable upside, equities analysts clearly believe MGM Resorts International is more favorable than GameStop.

Institutional & Insider Ownership

68.1% of MGM Resorts International shares are owned by institutional investors. Comparatively, 29.2% of GameStop shares are owned by institutional investors. 3.4% of MGM Resorts International shares are owned by insiders. Comparatively, 8.6% of GameStop 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.

Summary

MGM Resorts International beats GameStop on 8 of the 14 factors compared between the two stocks.

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.

About GameStop

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.