Investment Comparison: MGM vs. Royal Caribbean
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 30 2026
0mins
Source: NASDAQ.COM
- MGM Financial Performance: In FY 2025, MGM Resorts reported nearly $17.5 billion in revenue, reflecting a growth rate of approximately 1.7%, with a net income of about $206.2 million and a net margin of around 1.2%, indicating its profitability amidst high competition.
- Royal Caribbean Growth Momentum: Royal Caribbean Cruises achieved approximately $17.9 billion in revenue for FY 2025, an increase of nearly 8.8%, with a net income of about $4.3 billion and a net margin of 23.8%, showcasing its strong performance and profitability in the global cruise market.
- Debt and Liquidity Analysis: MGM's debt-to-equity ratio stands at approximately 11.9x with a current ratio of about 1.2x, indicating limited capital allocation flexibility; in contrast, Royal Caribbean's debt-to-equity ratio is 2.3x with a current ratio of 0.2x, highlighting potential risks in its expansion strategy.
- Market Competition and Outlook: While MGM's diversified operations in Las Vegas face intense competition and market softness, Royal Caribbean demonstrates stronger visibility into future demand, with projected double-digit earnings growth in 2026 and ongoing shareholder returns through buybacks.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to fall
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 46.640
Low
29.00
Averages
40.31
High
56.00
Current: 46.640
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international destinations featuring hotels and casinos, meetings and conference spaces, incredible live and theatrical entertainment experiences, and a range of restaurants, nightlife and retail offerings. Its segment includes Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. Las Vegas Strip Resorts consists of casino resorts: Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. Regional Operations consists of various casino properties: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which consists of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investigation into Barry Diller's MGM Acquisition Bid
- Acquisition Proposal Investigation: Barry Diller's unsolicited bid to acquire the remaining MGM stock at $48.30 per share is under scrutiny due to his position on MGM's board, raising potential conflicts of interest and breaches of fiduciary duty under Delaware law.
- Shareholder Rights Protection: Bleichmar Fonti & Auld LLP is investigating whether the proposed transaction complies with Delaware's stringent requirements to ensure fair treatment of all shareholders and avoid potential inequities in benefits.
- Governance Agreement Impact: The governance agreement between People, Inc. and MGM, allowing People to designate two directors, exacerbates Diller's dual role in the transaction, potentially compromising the board's independence and decision-making fairness.
- Legal Options Advisory: Current MGM shareholders are encouraged to contact BFA Law to understand their legal rights in this transaction, with all representation on a contingency fee basis, meaning shareholders bear no litigation costs.
See More
BFA Law Investigates Barry Diller's MGM Acquisition Proposal
- Acquisition Proposal Investigation: BFA Law is investigating Barry Diller's offer to acquire MGM Resorts at $48.30 per share, raising concerns about potential conflicts of interest that could affect shareholder rights.
- Board Review: MGM's board has stated it will carefully review the proposal to ensure it aligns with the best interests of the company and all shareholders, demonstrating a commitment to shareholder rights.
- Governance Agreement Impact: Diller, as a board member and with his company People, Inc. being MGM's largest single shareholder, may create conflicts of interest that must comply with Delaware law's stringent requirements to ensure fairness in the deal.
- Legal Options Reminder: Current MGM shareholders are encouraged to contact BFA for more information, indicating that shareholders may have legal options in this transaction, with attorney fees contingent on success, thus reducing financial risk for shareholders.
See More
Investigation into Barry Diller's MGM Acquisition Bid
- Acquisition Proposal Investigation: Barry Diller's unsolicited bid to acquire the remaining MGM stock at $48.30 per share is under investigation by Bleichmar Fonti & Auld LLP due to potential conflicts of interest arising from Diller's dual role as a board member, necessitating compliance with Delaware law.
- Board Review Process: MGM's board has stated it will carefully review the proposal to determine the best course of action for the company and its shareholders, which could significantly impact shareholder confidence and future investment decisions.
- Shareholder Rights Protection: BFA encourages current MGM shareholders to submit information regarding their legal options, emphasizing that all representation is on a contingency fee basis, ensuring shareholders bear no litigation costs.
- Legal Compliance Concerns: Given Diller's dual role in the transaction, the deal must adhere to Delaware's stringent “cleansing” requirements to ensure fairness to MGM shareholders, potentially influencing the legal framework for future similar transactions.
See More
Investment Comparison: Airbnb vs. MGM Resorts
- Airbnb Market Advantage: Airbnb connects over 5 million hosts with 8 million active listings globally, achieving nearly $12.2 billion in revenue for FY 2025, reflecting a 10.3% year-over-year growth that underscores its strong position in the short-term rental market, while its asset-light model mitigates operational risks.
- MGM Financial Status: MGM Resorts International reported nearly $17.5 billion in revenue for FY 2025, with a modest 1.7% year-over-year increase; however, its net income of approximately $206.2 million represents a significant decline from the previous year, indicating financial pressures amid a competitive landscape.
- Risks and Challenges: Airbnb faces legal challenges from cities like Los Angeles and Chicago, which could impact its operational flexibility, while MGM's debt-to-equity ratio of approximately 23.1x limits its liquidity and operational flexibility during economic downturns, posing significant risks.
- Valuation Comparison: Although MGM's price-to-sales ratio is significantly lower than Airbnb's (0.7x vs. 7.1x), both companies exhibit similar forward P/E ratios of 28.7x and 27.9x, respectively, indicating market optimism regarding Airbnb's future earnings potential despite its higher valuation.
See More
Investment Outlook: Airbnb vs. MGM Resorts
- Business Model Comparison: Airbnb operates a light-asset model with over 9 million active listings across more than 220 countries, achieving nearly $12.2 billion in revenue for FY 2025, reflecting a robust growth potential in the short-term rental market with a year-over-year increase of approximately 10.3%.
- Financial Health: MGM Resorts reported nearly $17.5 billion in revenue for FY 2025, with a modest year-over-year growth of 1.7%, and a net income of approximately $206.2 million, indicating stability during economic recovery; however, its debt-to-equity ratio of 23.1x limits financial flexibility.
- Legal Risk Challenges: Airbnb faces legal challenges from cities like Los Angeles and Chicago regarding rental regulations and pricing, which could impact its market operations, especially with the EU Short-Term Rental Regulation coming into effect in May 2026.
- Market Competition Landscape: While Airbnb's asset-light model provides strong competitive advantages, MGM Resorts continues to attract significant tourist traffic with its physical assets in Las Vegas and Macau, necessitating careful consideration of both companies' strategies in the ongoing market recovery.
See More
Penn Entertainment Stock Soars 48.3% with Optimistic Outlook
- Strong Regional Casinos: While the recovery of Las Vegas remains uncertain, regional casinos are thriving despite high inflation and gas prices, with Penn Entertainment's new hotel tower and casino projects in Ohio and Illinois enhancing its competitive edge, likely driving performance growth in the second half.
- Improving Interactive Business: After missteps in sports betting, Penn is pivoting to internet casinos, with digital losses projected to shrink from $268 million in 2025 to $20 million this year, indicating a successful strategy in digital gaming that could positively impact stock prices.
- Industry Consolidation Trends: With Caesars Entertainment and MGM Resorts International as acquisition targets, Penn stands to benefit from increased market valuation, while potential asset acquisitions could further solidify its market position, enhancing investor confidence.
- Potential for Continued Stock Gains: Considering the robust performance of regional markets, improvements in the interactive business, and opportunities arising from industry consolidation, Penn Entertainment's stock is poised for further gains in the second half, attracting increased investor interest.
See More
Investigation into Barry Diller's MGM Acquisition Bid
- Acquisition Proposal Investigation: Barry Diller's unsolicited bid to acquire the remaining MGM stock at $48.30 per share is under scrutiny due to his position on MGM's board, raising potential conflicts of interest and breaches of fiduciary duty under Delaware law.
- Shareholder Rights Protection: Bleichmar Fonti & Auld LLP is investigating whether the proposed transaction complies with Delaware's stringent requirements to ensure fair treatment of all shareholders and avoid potential inequities in benefits.
- Governance Agreement Impact: The governance agreement between People, Inc. and MGM, allowing People to designate two directors, exacerbates Diller's dual role in the transaction, potentially compromising the board's independence and decision-making fairness.
- Legal Options Advisory: Current MGM shareholders are encouraged to contact BFA Law to understand their legal rights in this transaction, with all representation on a contingency fee basis, meaning shareholders bear no litigation costs.
See More
BFA Law Investigates Barry Diller's MGM Acquisition Proposal
- Acquisition Proposal Investigation: BFA Law is investigating Barry Diller's offer to acquire MGM Resorts at $48.30 per share, raising concerns about potential conflicts of interest that could affect shareholder rights.
- Board Review: MGM's board has stated it will carefully review the proposal to ensure it aligns with the best interests of the company and all shareholders, demonstrating a commitment to shareholder rights.
- Governance Agreement Impact: Diller, as a board member and with his company People, Inc. being MGM's largest single shareholder, may create conflicts of interest that must comply with Delaware law's stringent requirements to ensure fairness in the deal.
- Legal Options Reminder: Current MGM shareholders are encouraged to contact BFA for more information, indicating that shareholders may have legal options in this transaction, with attorney fees contingent on success, thus reducing financial risk for shareholders.
See More
Investigation into Barry Diller's MGM Acquisition Bid
- Acquisition Proposal Investigation: Barry Diller's unsolicited bid to acquire the remaining MGM stock at $48.30 per share is under investigation by Bleichmar Fonti & Auld LLP due to potential conflicts of interest arising from Diller's dual role as a board member, necessitating compliance with Delaware law.
- Board Review Process: MGM's board has stated it will carefully review the proposal to determine the best course of action for the company and its shareholders, which could significantly impact shareholder confidence and future investment decisions.
- Shareholder Rights Protection: BFA encourages current MGM shareholders to submit information regarding their legal options, emphasizing that all representation is on a contingency fee basis, ensuring shareholders bear no litigation costs.
- Legal Compliance Concerns: Given Diller's dual role in the transaction, the deal must adhere to Delaware's stringent “cleansing” requirements to ensure fairness to MGM shareholders, potentially influencing the legal framework for future similar transactions.
See More
Investment Comparison: Airbnb vs. MGM Resorts
- Airbnb Market Advantage: Airbnb connects over 5 million hosts with 8 million active listings globally, achieving nearly $12.2 billion in revenue for FY 2025, reflecting a 10.3% year-over-year growth that underscores its strong position in the short-term rental market, while its asset-light model mitigates operational risks.
- MGM Financial Status: MGM Resorts International reported nearly $17.5 billion in revenue for FY 2025, with a modest 1.7% year-over-year increase; however, its net income of approximately $206.2 million represents a significant decline from the previous year, indicating financial pressures amid a competitive landscape.
- Risks and Challenges: Airbnb faces legal challenges from cities like Los Angeles and Chicago, which could impact its operational flexibility, while MGM's debt-to-equity ratio of approximately 23.1x limits its liquidity and operational flexibility during economic downturns, posing significant risks.
- Valuation Comparison: Although MGM's price-to-sales ratio is significantly lower than Airbnb's (0.7x vs. 7.1x), both companies exhibit similar forward P/E ratios of 28.7x and 27.9x, respectively, indicating market optimism regarding Airbnb's future earnings potential despite its higher valuation.
See More
Investment Outlook: Airbnb vs. MGM Resorts
- Business Model Comparison: Airbnb operates a light-asset model with over 9 million active listings across more than 220 countries, achieving nearly $12.2 billion in revenue for FY 2025, reflecting a robust growth potential in the short-term rental market with a year-over-year increase of approximately 10.3%.
- Financial Health: MGM Resorts reported nearly $17.5 billion in revenue for FY 2025, with a modest year-over-year growth of 1.7%, and a net income of approximately $206.2 million, indicating stability during economic recovery; however, its debt-to-equity ratio of 23.1x limits financial flexibility.
- Legal Risk Challenges: Airbnb faces legal challenges from cities like Los Angeles and Chicago regarding rental regulations and pricing, which could impact its market operations, especially with the EU Short-Term Rental Regulation coming into effect in May 2026.
- Market Competition Landscape: While Airbnb's asset-light model provides strong competitive advantages, MGM Resorts continues to attract significant tourist traffic with its physical assets in Las Vegas and Macau, necessitating careful consideration of both companies' strategies in the ongoing market recovery.
See More
Penn Entertainment Stock Soars 48.3% with Optimistic Outlook
- Strong Regional Casinos: While the recovery of Las Vegas remains uncertain, regional casinos are thriving despite high inflation and gas prices, with Penn Entertainment's new hotel tower and casino projects in Ohio and Illinois enhancing its competitive edge, likely driving performance growth in the second half.
- Improving Interactive Business: After missteps in sports betting, Penn is pivoting to internet casinos, with digital losses projected to shrink from $268 million in 2025 to $20 million this year, indicating a successful strategy in digital gaming that could positively impact stock prices.
- Industry Consolidation Trends: With Caesars Entertainment and MGM Resorts International as acquisition targets, Penn stands to benefit from increased market valuation, while potential asset acquisitions could further solidify its market position, enhancing investor confidence.
- Potential for Continued Stock Gains: Considering the robust performance of regional markets, improvements in the interactive business, and opportunities arising from industry consolidation, Penn Entertainment's stock is poised for further gains in the second half, attracting increased investor interest.
See More
