Which Casino Stock Offers Better Odds: MGM Resorts or Las Vegas Sands?

Monday 20th April 2020

Las Vegas Sands looks like the better bet compared to MGM Resorts in our opinion. Our conclusion is based on our detailed dashboard analysis, Is Las Vegas Sands Expensive Or Cheap After A -26.4% Move vs. MGM Resorts International? wherein we compare trends in key metrics for the two casino companies over the years to determine their relative valuations under the current circumstances.

Casino stocks have been trending downwards since the coronavirus outbreak was declared an epidemic in China, which subsequently led to a two-week shutdown in Macau. However, the containment efforts didn't last long and the WHO declared COVID-19 a pandemic on March 11. The impact of coronavirus crisis and oil price war has been felt by nearly all sections of the global economy, resulting in a 20% decline in market indices. Las Vegas Sands (NYSE: LVS) stock is down by ~26% since early February, while its rival MGM Resorts (NYSE: MGM) has declined 53% over the same period. The huge exposure of MGM Resorts to the low-growth region of Las Vegas has been a deterrent in this recessionary environment. In 2019, MGM Resorts generated nearly 50% of its total revenues from Las Vegas while Sands' exposure stood at less than 10%.

Las Vegas Sands To Outperform MGM Resorts Leveraged By Its Leadership In Macau

Our dashboard forecasting US COVID-19 cases with cross-country comparisons analyzes expected recovery time-frames and possible spread of the virus.

Further, our dashboard -28% Coronavirus crash vs. 4 Historic crashes builds a complete macro picture and complements our analyses of the coronavirus outbreak's impact.

What's behind Trefis? See How It's Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams

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