Caesars Acquisition (NASDAQ: CACQ) and Wynn Resorts, Limited (NASDAQ:WYNN) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
This table compares Caesars Acquisition and Wynn Resorts, Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wynn Resorts, Limited||5.02%||165.77%||3.22%|
Valuation and Earnings
This table compares Caesars Acquisition and Wynn Resorts, Limited’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Wynn Resorts, Limited||$5.42 billion||2.36||$1.25 billion||$2.67||47.05|
Wynn Resorts, Limited has higher revenue and earnings than Caesars Acquisition. Caesars Acquisition is trading at a lower price-to-earnings ratio than Wynn Resorts, Limited, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Caesars Acquisition and Wynn Resorts, Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wynn Resorts, Limited||0||12||9||0||2.43|
Wynn Resorts, Limited has a consensus target price of $124.97, indicating a potential downside of 0.53%. Given Wynn Resorts, Limited’s higher probable upside, analysts plainly believe Wynn Resorts, Limited is more favorable than Caesars Acquisition.
Insider and Institutional Ownership
56.1% of Caesars Acquisition shares are held by institutional investors. Comparatively, 75.1% of Wynn Resorts, Limited shares are held by institutional investors. 0.2% of Caesars Acquisition shares are held by insiders. Comparatively, 13.2% of Wynn Resorts, Limited shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Wynn Resorts, Limited pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Caesars Acquisition does not pay a dividend. Wynn Resorts, Limited pays out 74.9% of its earnings in the form of a dividend.
Risk and Volatility
Caesars Acquisition has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Wynn Resorts, Limited has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.
Wynn Resorts, Limited beats Caesars Acquisition on 10 of the 13 factors compared between the two stocks.
Caesars Acquisition Company Profile
Caesars Acquisition Company (CAC) owns voting membership units of Caesars Growth Partners, LLC (CGP LLC), a joint venture between CAC and subsidiaries of Caesars Entertainment Corporation (CEC or Caesars Entertainment). CAC serves as CGP LLC’s managing member and sole holder of its outstanding voting units. CGP LLC is a casino asset and entertainment company. Through its relationship with Caesars Entertainment, CGP LLC has the ability to access Caesars Entertainment’s management know-how, brand equity, Total Rewards loyalty program and structural synergies. As of December 31, 2016, CGP LLC’s Interactive Entertainment business consisted of two operating units: The World Series of Poker (WSOP) and regulated online real money gaming (RMG). CGP LLC’s casino properties and developments include Planet Hollywood Resort & Casino in Las Vegas (Planet Hollywood), The LINQ Hotel & Casino, Bally’s Las Vegas, The Cromwell, Horseshoe Baltimore Casino (Horseshoe Baltimore) and Harrah’s New Orleans.
Wynn Resorts, Limited Company Profile
Wynn Resorts, Limited (Wynn Resorts) is a developer, owner and operator of destination casino resorts that integrate accommodations and a range of amenities, including dining outlets, retail offerings, entertainment theaters and meeting complexes. The Company’s segments include Macau Operations and Las Vegas Operations. The Company’s Macau Operations include Wynn Macau and Wynn Palace. It also includes Encore, an expansion at Wynn Macau. The Company’s Las Vegas Operations include Wynn Las Vegas and Encore, an expansion at Wynn Las Vegas. Wynn Las Vegas is located at the intersection of the Las Vegas Strip and Sands Avenue. As of December 31, 2016, it occupied approximately 215 acres of land fronting the Las Vegas Strip. As of December 31, 2016, the Company owned approximately 18 acres across Sands Avenue. The Company is constructing Wynn Boston Harbor, an integrated casino resort in Everett, Massachusetts.
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