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 $8.5B against $3.5B — 2.5× the size. Marriott Vacations Worldwide Corporation 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 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%). Both pay a dividend; Marriott Vacations Worldwide Corporation yields more (2.28% vs 0.03%). Across the 20 metrics below, MGM Resorts International leads on 15 and Marriott Vacations Worldwide Corporation on 5.

Valuation

Metric MGM VAC Resorts & Casinos median
P/E 19.39 n/m 18.52
P/S 0.47 0.69 0.54
P/B 2.46 1.74 2.13
Price to free cash flow 4.11 35.08 13.62
EV/EBITDA 4.95 n/m 9.18
EV/Sales 0.70 1.65 1.80
Earnings yield 5.16% (9.39%) 1.69%
Free cash flow yield 24.34% 2.85% 6.51%

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%) —
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) 3.08

Dividend

Metric MGM VAC Resorts & Casinos median
Dividend yield 0.03% 2.28% 1.27%
Payout ratio 0.00 0.32 0.00

Size

Metric MGM VAC Resorts & Casinos median
Market cap 8.51b 3.47b 2.43b

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