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 $8.5B against $6.0B — 1.4× the size. Caesars Entertainment, Inc. has negative trailing earnings, so its P/E is not meaningful; MGM Resorts International trades at 19.4×. 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 19.39 18.52
P/S 0.52 0.47 0.54
P/B 1.70 2.46 2.13
Price to free cash flow 7.31 4.11 13.62
EV/EBITDA 5.01 4.95 9.18
EV/Sales 1.57 0.70 1.80
Earnings yield (7.70%) 5.16% 1.69%
Free cash flow yield 13.68% 24.34% 6.51%

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%) —
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 3.08

Dividend

Metric CZR MGM Resorts & Casinos median
Dividend yield — 0.03% 1.27%
Payout ratio 0.00 0.00 0.00

Size

Metric CZR MGM Resorts & Casinos median
Market cap 6.02b 8.51b 2.43b

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