Investment Comparison Between MGM and Caesars
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- MGM Financial Performance: In FY 2025, MGM Resorts reported nearly $17.5 billion in revenue, reflecting a growth rate of approximately 1.7%, although its net income was $206.2 million, resulting in a net margin of only 1.2%, indicating that profitability in the luxury market needs improvement.
- Caesars Financial Health: Caesars Entertainment generated approximately $11.5 billion in revenue for FY 2025, a 2.1% increase, yet faced a net loss of nearly $502 million, leading to a negative net margin of -4.4%, highlighting the need for better cost management.
- Risk Analysis: MGM's significant geographic concentration on the Las Vegas Strip exposes it to economic fluctuations and regulatory risks, while Caesars carries a heavy debt load of about $11.9 billion, necessitating substantial interest payments, with short-term assets insufficient to cover upcoming obligations, indicating higher risk.
- Market Valuation Comparison: MGM's forward P/E ratio stands at 29.6x, significantly lower than Caesars' 85.8x, and MGM's price-to-sales ratio is 0.8x, suggesting relative value attractiveness in the market, potentially making it a better fit for long-term investors.
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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: 47.940
Low
29.00
Averages
40.31
High
56.00
Current: 47.940
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.
BetMGM Launches World Cup Promotions for Soccer Fans
- World Cup Grand Prize Promotion: BetMGM's Goal Rush Grand Prize promotion allows participants to share $500,000 in bonus bets for every goal scored by the U.S. men's national team when placing a $5 pre-match wager, significantly enhancing customer engagement during the World Cup and boosting brand visibility.
- Instant Payout Innovation: The 2-Up Early Payout promotion enables customers to win instantly when their team leads by two goals, enhancing user experience and potentially increasing customer loyalty, thereby solidifying BetMGM's position in the competitive sports betting market.
- Star Game Experience: Tim Howard's Penalty Kick Shootout game will launch on June 11, allowing players to participate for free and win various prizes, which not only attracts soccer fans but also elevates BetMGM's brand recognition and user interaction.
- Market Expansion and Responsible Gambling: Operating in 30 markets, BetMGM emphasizes the importance of responsible gambling by integrating tools like GameSense to ensure customers enjoy a safe gaming experience, demonstrating a strong commitment to customer welfare.
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BetMGM Launches World Cup Promotions for Soccer Fans
- World Cup Grand Prize Promotion: BetMGM's Goal Rush promotion allows customers to share $500,000 in bonus bets for every goal scored by the U.S. men's national team, incentivizing fan engagement and enhancing brand visibility during the tournament.
- New Game Launches: Collaborating with soccer legend Tim Howard, BetMGM introduces new casino games, enhancing user experience and attracting more sports fans, thereby expanding its market share in the gaming industry.
- Instant Payout Innovation: The 2-Up Early Payout promotion enables customers to win instantly when their team leads by two goals, increasing user engagement and satisfaction, which is expected to boost customer loyalty.
- Watch Party Events: BetMGM will host watch parties nationwide, featuring curated food and beverage offerings, enhancing the social experience for customers while increasing brand influence and customer retention.
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MGM vs. Wynn: The Battle of Scale vs. Luxury
- Market Positioning Comparison: MGM Resorts operates a vast portfolio of 31 hotel and gaming destinations, achieving $17.5 billion in revenue for FY 2025, a 1.7% increase, showcasing its strong appeal in the mass market, while Wynn Resorts focuses on the luxury segment with flat revenue of $7.1 billion and a net income of $327.3 million, reflecting a higher profitability margin of 4.6% despite stagnant growth.
- Financial Health Status: MGM's debt-to-equity ratio stands at 23.1x, indicating a highly leveraged capital structure, whereas Wynn's negative ratio of -44.6x suggests total liabilities exceed shareholder equity, although Wynn's current ratio of 1.6x provides a better cushion for meeting short-term obligations.
- Cash Flow Performance: MGM generated $1.7 billion in free cash flow for FY 2025, demonstrating strong operational capabilities, while Wynn's free cash flow of $692.2 million, although lower, still indicates its ability to generate cash in the high-end market.
- Acquisition Dynamics: MGM received an acquisition offer from People Incorporated on June 1, priced at $48.30 per share, which propelled its stock to a 52-week high of $51.59, suggesting limited future upside, thus requiring investors to exercise caution before deciding on MGM stock purchases.
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Analysis of Competition in Las Vegas Gaming Market
- Market Positioning Comparison: MGM Resorts International achieved $17.5 billion in revenue for FY 2025 with a growth rate of 1.7% through its 31 hotel and gaming destinations, showcasing its broad coverage in the mass market and digital gaming, despite facing a high debt-to-equity ratio of 23.1x, indicating significant financial leverage risks.
- Profitability Analysis: Wynn Resorts generated $7.1 billion in revenue for FY 2025 with a net margin of approximately 4.6%, demonstrating that despite flat revenue, its high-end market positioning allows for significantly higher cash flow per room compared to peers, while its debt-to-equity ratio stands at -44.6x, reflecting financial vulnerability.
- Acquisition Dynamics: MGM Resorts received an acquisition offer from People Incorporated on June 1, priced at $48.30 per share, which propelled its stock to a 52-week high of $51.59, suggesting limited upside if the deal goes through, thus advising investors to be cautious until the acquisition situation stabilizes.
- Investment Recommendation: While MGM Resorts appears cheaper based on total sales, Wynn Resorts offers a lower forward P/E ratio, indicating expected future earnings growth that surpasses its rival, making Wynn a more attractive investment option in the current market landscape.
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Investment Comparison Between MGM and Caesars
- MGM Financial Performance: In FY 2025, MGM Resorts reported nearly $17.5 billion in revenue, reflecting a growth rate of approximately 1.7%, although its net income was $206.2 million, resulting in a net margin of only 1.2%, indicating that profitability in the luxury market needs improvement.
- Caesars Financial Health: Caesars Entertainment generated approximately $11.5 billion in revenue for FY 2025, a 2.1% increase, yet faced a net loss of nearly $502 million, leading to a negative net margin of -4.4%, highlighting the need for better cost management.
- Risk Analysis: MGM's significant geographic concentration on the Las Vegas Strip exposes it to economic fluctuations and regulatory risks, while Caesars carries a heavy debt load of about $11.9 billion, necessitating substantial interest payments, with short-term assets insufficient to cover upcoming obligations, indicating higher risk.
- Market Valuation Comparison: MGM's forward P/E ratio stands at 29.6x, significantly lower than Caesars' 85.8x, and MGM's price-to-sales ratio is 0.8x, suggesting relative value attractiveness in the market, potentially making it a better fit for long-term investors.
See More
MGM vs. Caesars: Which Casino Stock to Bet on for 2026?
- Financial Performance Comparison: MGM Resorts reported approximately $17.5 billion in revenue for FY 2025, reflecting a 1.7% growth with a net income of about $206.2 million and a net margin of 1.2%, indicating stability and profitability in the luxury market.
- Strategic Market Differences: MGM focuses on luxury destinations and international expansion, particularly in Macao, while Caesars relies on its 52 properties across the U.S. and a robust loyalty program; despite Caesars generating $11.5 billion in revenue for FY 2025, it faced a net loss of nearly $502 million with a negative net margin of -4.4%.
- Debt and Liquidity Analysis: MGM's debt-to-equity ratio stands at 23.1 with a current ratio of 1.2, indicating strong financial health, whereas Caesars has a high debt-to-equity ratio of 7.5 and a current ratio of only 0.8, suggesting insufficient short-term liquidity and significant financial pressure.
- Market Competition and Risks: MGM's geographic concentration on the Las Vegas Strip makes it vulnerable to economic fluctuations, while Caesars faces competitive pressures from tribal gaming and reliance on digital infrastructure; future market performance will depend on how both companies navigate these challenges.
See More
BetMGM Launches World Cup Promotions for Soccer Fans
- World Cup Grand Prize Promotion: BetMGM's Goal Rush Grand Prize promotion allows participants to share $500,000 in bonus bets for every goal scored by the U.S. men's national team when placing a $5 pre-match wager, significantly enhancing customer engagement during the World Cup and boosting brand visibility.
- Instant Payout Innovation: The 2-Up Early Payout promotion enables customers to win instantly when their team leads by two goals, enhancing user experience and potentially increasing customer loyalty, thereby solidifying BetMGM's position in the competitive sports betting market.
- Star Game Experience: Tim Howard's Penalty Kick Shootout game will launch on June 11, allowing players to participate for free and win various prizes, which not only attracts soccer fans but also elevates BetMGM's brand recognition and user interaction.
- Market Expansion and Responsible Gambling: Operating in 30 markets, BetMGM emphasizes the importance of responsible gambling by integrating tools like GameSense to ensure customers enjoy a safe gaming experience, demonstrating a strong commitment to customer welfare.
See More
BetMGM Launches World Cup Promotions for Soccer Fans
- World Cup Grand Prize Promotion: BetMGM's Goal Rush promotion allows customers to share $500,000 in bonus bets for every goal scored by the U.S. men's national team, incentivizing fan engagement and enhancing brand visibility during the tournament.
- New Game Launches: Collaborating with soccer legend Tim Howard, BetMGM introduces new casino games, enhancing user experience and attracting more sports fans, thereby expanding its market share in the gaming industry.
- Instant Payout Innovation: The 2-Up Early Payout promotion enables customers to win instantly when their team leads by two goals, increasing user engagement and satisfaction, which is expected to boost customer loyalty.
- Watch Party Events: BetMGM will host watch parties nationwide, featuring curated food and beverage offerings, enhancing the social experience for customers while increasing brand influence and customer retention.
See More
MGM vs. Wynn: The Battle of Scale vs. Luxury
- Market Positioning Comparison: MGM Resorts operates a vast portfolio of 31 hotel and gaming destinations, achieving $17.5 billion in revenue for FY 2025, a 1.7% increase, showcasing its strong appeal in the mass market, while Wynn Resorts focuses on the luxury segment with flat revenue of $7.1 billion and a net income of $327.3 million, reflecting a higher profitability margin of 4.6% despite stagnant growth.
- Financial Health Status: MGM's debt-to-equity ratio stands at 23.1x, indicating a highly leveraged capital structure, whereas Wynn's negative ratio of -44.6x suggests total liabilities exceed shareholder equity, although Wynn's current ratio of 1.6x provides a better cushion for meeting short-term obligations.
- Cash Flow Performance: MGM generated $1.7 billion in free cash flow for FY 2025, demonstrating strong operational capabilities, while Wynn's free cash flow of $692.2 million, although lower, still indicates its ability to generate cash in the high-end market.
- Acquisition Dynamics: MGM received an acquisition offer from People Incorporated on June 1, priced at $48.30 per share, which propelled its stock to a 52-week high of $51.59, suggesting limited future upside, thus requiring investors to exercise caution before deciding on MGM stock purchases.
See More
Analysis of Competition in Las Vegas Gaming Market
- Market Positioning Comparison: MGM Resorts International achieved $17.5 billion in revenue for FY 2025 with a growth rate of 1.7% through its 31 hotel and gaming destinations, showcasing its broad coverage in the mass market and digital gaming, despite facing a high debt-to-equity ratio of 23.1x, indicating significant financial leverage risks.
- Profitability Analysis: Wynn Resorts generated $7.1 billion in revenue for FY 2025 with a net margin of approximately 4.6%, demonstrating that despite flat revenue, its high-end market positioning allows for significantly higher cash flow per room compared to peers, while its debt-to-equity ratio stands at -44.6x, reflecting financial vulnerability.
- Acquisition Dynamics: MGM Resorts received an acquisition offer from People Incorporated on June 1, priced at $48.30 per share, which propelled its stock to a 52-week high of $51.59, suggesting limited upside if the deal goes through, thus advising investors to be cautious until the acquisition situation stabilizes.
- Investment Recommendation: While MGM Resorts appears cheaper based on total sales, Wynn Resorts offers a lower forward P/E ratio, indicating expected future earnings growth that surpasses its rival, making Wynn a more attractive investment option in the current market landscape.
See More
Investment Comparison Between MGM and Caesars
- MGM Financial Performance: In FY 2025, MGM Resorts reported nearly $17.5 billion in revenue, reflecting a growth rate of approximately 1.7%, although its net income was $206.2 million, resulting in a net margin of only 1.2%, indicating that profitability in the luxury market needs improvement.
- Caesars Financial Health: Caesars Entertainment generated approximately $11.5 billion in revenue for FY 2025, a 2.1% increase, yet faced a net loss of nearly $502 million, leading to a negative net margin of -4.4%, highlighting the need for better cost management.
- Risk Analysis: MGM's significant geographic concentration on the Las Vegas Strip exposes it to economic fluctuations and regulatory risks, while Caesars carries a heavy debt load of about $11.9 billion, necessitating substantial interest payments, with short-term assets insufficient to cover upcoming obligations, indicating higher risk.
- Market Valuation Comparison: MGM's forward P/E ratio stands at 29.6x, significantly lower than Caesars' 85.8x, and MGM's price-to-sales ratio is 0.8x, suggesting relative value attractiveness in the market, potentially making it a better fit for long-term investors.
See More
MGM vs. Caesars: Which Casino Stock to Bet on for 2026?
- Financial Performance Comparison: MGM Resorts reported approximately $17.5 billion in revenue for FY 2025, reflecting a 1.7% growth with a net income of about $206.2 million and a net margin of 1.2%, indicating stability and profitability in the luxury market.
- Strategic Market Differences: MGM focuses on luxury destinations and international expansion, particularly in Macao, while Caesars relies on its 52 properties across the U.S. and a robust loyalty program; despite Caesars generating $11.5 billion in revenue for FY 2025, it faced a net loss of nearly $502 million with a negative net margin of -4.4%.
- Debt and Liquidity Analysis: MGM's debt-to-equity ratio stands at 23.1 with a current ratio of 1.2, indicating strong financial health, whereas Caesars has a high debt-to-equity ratio of 7.5 and a current ratio of only 0.8, suggesting insufficient short-term liquidity and significant financial pressure.
- Market Competition and Risks: MGM's geographic concentration on the Las Vegas Strip makes it vulnerable to economic fluctuations, while Caesars faces competitive pressures from tribal gaming and reliance on digital infrastructure; future market performance will depend on how both companies navigate these challenges.
See More
