MGM Resorts International (MGM) vs Marriott Vacations Worldwide Corporation (VAC)

MGM Resorts International and Marriott Vacations Worldwide Corporation are both Resorts & Casinos companies. MGM Resorts International is the larger, with a market value of $7.4B against $3.9B — 1.9× the size. Marriott Vacations Worldwide Corporation 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 1.67%. MGM Resorts International has the higher net margin (2.36% vs −6.47%) and the higher return on invested capital (9.23% vs −1.51%). Across the 19 metrics below, MGM Resorts International leads on 15 and Marriott Vacations Worldwide Corporation on 4.

Valuation

Metric MGM VAC Resorts & Casinos median
P/E 16.95 n/m 17.15
P/S 0.41 0.75 0.53
P/B 2.15 1.88 2.09
Price to free cash flow 3.59 37.91 9.94
EV/EBITDA 4.54 n/m 8.87
EV/Sales 0.64 1.71 1.78
Earnings yield 5.90% (8.68%) 1.35%
Free cash flow yield 27.84% 2.64% 7.20%

Profitability

Metric MGM VAC Resorts & Casinos median
Gross margin 44.16% 90.72% 50.85%
Operating margin 5.73% (3.27%) 10.41%
Net margin 2.36% (6.47%) 1.28%
Free cash flow margin 11.34% 1.98% 4.23%
Return on equity 11.82% (14.71%) 5.28%
Return on assets 1.03% (3.45%) 0.57%
Return on invested capital 9.23% (1.51%) 5.61%

Growth

Metric MGM VAC Resorts & Casinos median
Revenue growth (TTM) 3.19% 1.67% 2.76%
EPS growth (last fiscal year) (68.33%) (257.58%) 8.54%
Revenue growth, 5-year CAGR 27.71% 11.76% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MGM VAC Resorts & Casinos median
Debt to equity 1.80 2.65 1.94
Current ratio 1.34 3.56 0.91
Net debt to EBITDA 1.79 (1,236.75) 3.48

Dividend

Metric MGM VAC Resorts & Casinos median
Dividend yield — 2.88% 1.94%
Payout ratio — — 0.37

Size

Metric MGM VAC Resorts & Casinos median
Market cap 7.42b 3.86b 2.44b

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