Critical Comparison: MGM Resorts International (NYSE:MGM) & MakeMyTrip (NASDAQ:MMYT)
by Tristan Rich · The Markets DailyMGM Resorts International (NYSE:MGM – Get Free Report) and MakeMyTrip (NASDAQ:MMYT – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.
Risk & Volatility
MGM Resorts International has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, MakeMyTrip has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Earnings & Valuation
This table compares MGM Resorts International and MakeMyTrip”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGM Resorts International | $17.54 billion | 0.55 | $205.86 million | $1.65 | 23.31 |
| MakeMyTrip | $1.04 billion | 4.27 | $51.80 million | $0.12 | 394.95 |
MGM Resorts International has higher revenue and earnings than MakeMyTrip. MGM Resorts International is trading at a lower price-to-earnings ratio than MakeMyTrip, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MGM Resorts International and MakeMyTrip’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MGM Resorts International | 2.40% | 23.30% | 1.90% |
| MakeMyTrip | 3.23% | -632.52% | 8.31% |
Institutional and Insider Ownership
68.1% of MGM Resorts International shares are held by institutional investors. Comparatively, 51.9% of MakeMyTrip shares are held by institutional investors. 3.4% of MGM Resorts International shares are held by insiders. Comparatively, 10.3% of MakeMyTrip shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for MGM Resorts International and MakeMyTrip, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MGM Resorts International | 2 | 8 | 10 | 2 | 2.55 |
| MakeMyTrip | 0 | 2 | 5 | 0 | 2.71 |
MGM Resorts International presently has a consensus target price of $53.25, indicating a potential upside of 38.46%. MakeMyTrip has a consensus target price of $86.75, indicating a potential upside of 83.04%. Given MakeMyTrip’s stronger consensus rating and higher probable upside, analysts plainly believe MakeMyTrip is more favorable than MGM Resorts International.
Summary
MGM Resorts International beats MakeMyTrip on 8 of the 15 factors compared between the two stocks.
About MGM Resorts International
MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.
About MakeMyTrip
MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.