Analyzing Wynn Resorts (WYNN) and The Competition

Wynn Resorts (NASDAQ: WYNN) is one of 30 publicly-traded companies in the “Hotels & motels” industry, but how does it weigh in compared to its competitors? We will compare Wynn Resorts to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Volatility and Risk

Wynn Resorts has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Wynn Resorts’ competitors have a beta of 1.15, meaning that their average share price is 15% more volatile than the S&P 500.



Analyst Recommendations

This is a summary of current recommendations for Wynn Resorts and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wynn Resorts 0 7 14 0 2.67
Wynn Resorts Competitors 307 1439 2182 73 2.51

Wynn Resorts presently has a consensus target price of $190.03, suggesting a potential upside of 3.38%. As a group, “Hotels & motels” companies have a potential upside of 4.23%. Given Wynn Resorts’ competitors higher possible upside, analysts clearly believe Wynn Resorts has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Wynn Resorts and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wynn Resorts $6.31 billion $747.18 million 33.66
Wynn Resorts Competitors $3.57 billion $470.05 million 166.34

Wynn Resorts has higher revenue and earnings than its competitors. Wynn Resorts is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Wynn Resorts and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wynn Resorts 11.85% 100.14% 4.49%
Wynn Resorts Competitors 10.97% 12.75% 4.81%

Dividends

Wynn Resorts pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. Wynn Resorts pays out 36.6% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.8% and pay out 48.0% of their earnings in the form of a dividend.

Insider & Institutional Ownership

70.2% of Wynn Resorts shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Hotels & motels” companies are owned by institutional investors. 13.2% of Wynn Resorts shares are owned by insiders. Comparatively, 19.3% of shares of all “Hotels & motels” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Wynn Resorts beats its competitors on 9 of the 15 factors compared.

Wynn Resorts Company Profile

Wynn Resorts, Limited develops, owns, and operates destination casino resorts. As of February 15, 2018, the company's Wynn Macau segment had approximately 273,000 square feet of casino space, which offered 316 table games and 988 slot machines, private gaming salons, sky casinos, and a poker pit; 2 luxury hotel towers with a total of 1,008 guest rooms and suites; 8 food and beverage outlets; 59,000 square feet of retail space; 31,000 square feet of meeting and convention space; recreation and leisure facilities comprising 2 health clubs, spas, a salon, and a pool; and a rotunda show, a Chinese zodiac-inspired ceiling. Its Wynn Palace segment had approximately 420,000 square feet of casino space that offers 323 table games and 1,115 slot machines, private gaming salons, and sky casinos; a luxury hotel with a total of 1,706 guest rooms, suites, and villas; 11 food and beverage outlets; 106,000 square feet of retail space; 37,000 square feet of meeting and convention space; recreation and leisure facilities, including a gondola ride, health club, spa, salon, and pool; and public attractions, such as a performance lake and floral art displays. The company's Las Vegas Operations segment had approximately 192,000 square feet of casino space, which provide 247 table games and 1,829 slot machines, private gaming salons, a sky casino, a poker room, and a race and sports book; 2 luxury hotel towers with a total of 4,748 guest rooms, suites, and villas; 33 food and beverage outlets; 110,000 square feet of retail space; 290,000 square feet of meeting and convention space; 3 nightclubs and a beach club; recreation and leisure facilities, including swimming pools, private cabanas, 2 full service spas and salons, and a wedding chapel; and Le Rêve-The Dream, a water-based theatrical production and a theater presenting entertainment productions and various headliner entertainment acts. The company was founded in 2002 and is based in Las Vegas, Nevada.

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