Reviewing Galaxy Gaming (OTCMKTS:GLXZ) and Wynn Resorts (NASDAQ:WYNN)

Galaxy Gaming (OTCMKTS:GLXZ) and Wynn Resorts (NASDAQ:WYNN) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Galaxy Gaming and Wynn Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Gaming	0	0	0	0	0.00
Wynn Resorts	0	3	13	1	2.88

Wynn Resorts has a consensus price target of $137.93, indicating a potential upside of 30.61%. Given Wynn Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Wynn Resorts is more favorable than Galaxy Gaming.

Insider and Institutional Ownership

0.4% of Galaxy Gaming shares are owned by institutional investors. Comparatively, 88.6% of Wynn Resorts shares are owned by institutional investors. 21.9% of Galaxy Gaming shares are owned by company insiders. Comparatively, 0.9% of Wynn Resorts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Galaxy Gaming and Wynn Resorts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Gaming	$30.87 million	1.52	$1.48 million	$0.06	30.83
Wynn Resorts	$7.14 billion	1.54	$327.33 million	$3.00	35.20

Wynn Resorts has higher revenue and earnings than Galaxy Gaming. Galaxy Gaming is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Galaxy Gaming and Wynn Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galaxy Gaming	4.81%	-7.57%	5.48%
Wynn Resorts	4.59%	-39.05%	3.41%

Volatility & Risk

Galaxy Gaming has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Wynn Resorts has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Summary

Wynn Resorts beats Galaxy Gaming on 11 of the 15 factors compared between the two stocks.

About Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.

About Wynn Resorts

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.