Caesars Entertainment, Inc. (CZR) vs MGM Resorts International (MGM)

Caesars Entertainment, Inc. and MGM Resorts International are both Resorts & Casinos companies. MGM Resorts International is the larger, with a market value of $7.4B against $6.0B — 1.2× the size. Caesars Entertainment, Inc. has negative trailing earnings, so its P/E is not meaningful; MGM Resorts International trades at 17.0×. MGM Resorts International grew revenue faster over the last twelve months: 3.19% against 2.41%. MGM Resorts International has the higher net margin (2.36% vs −3.99%) and the higher return on invested capital (9.23% vs 7.36%). Across the 20 metrics below, MGM Resorts International leads on 17 and Caesars Entertainment, Inc. on 3.

Valuation

Metric CZR MGM Resorts & Casinos median
P/E n/m 16.95 17.15
P/S 0.51 0.41 0.53
P/B 1.66 2.15 2.09
Price to free cash flow 7.12 3.59 9.94
EV/EBITDA 4.97 4.54 8.87
EV/Sales 1.55 0.64 1.78
Earnings yield (7.91%) 5.90% 1.35%
Free cash flow yield 14.04% 27.84% 7.20%

Profitability

Metric CZR MGM Resorts & Casinos median
Gross margin 53.21% 44.16% 50.85%
Operating margin 15.94% 5.73% 10.41%
Net margin (3.99%) 2.36% 1.28%
Free cash flow margin 7.25% 11.34% 4.23%
Return on equity (12.12%) 11.82% 5.28%
Return on assets (1.45%) 1.03% 0.57%
Return on invested capital 7.36% 9.23% 5.61%

Growth

Metric CZR MGM Resorts & Casinos median
Revenue growth (TTM) 2.41% 3.19% 2.76%
EPS growth (last fiscal year) (87.60%) (68.33%) 8.54%
Revenue growth, 5-year CAGR 25.92% 27.71% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CZR MGM Resorts & Casinos median
Debt to equity 3.74 1.80 1.94
Current ratio 0.85 1.34 0.91
Net debt to EBITDA 2.95 1.79 3.48

Dividend

Metric CZR MGM Resorts & Casinos median
Dividend yield — — 1.94%
Payout ratio — — 0.37

Size

Metric CZR MGM Resorts & Casinos median
Market cap 5.96b 7.42b 2.44b

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