Las Vegas Sands (NYSE: LVS) and Ameristar Casinos (NASDAQ:ASCA) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
37.8% of Las Vegas Sands shares are held by institutional investors. 10.1% of Las Vegas Sands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Las Vegas Sands pays an annual dividend of $2.92 per share and has a dividend yield of 4.3%. Ameristar Casinos does not pay a dividend. Las Vegas Sands pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Las Vegas Sands has increased its dividend for 4 consecutive years.
This table compares Las Vegas Sands and Ameristar Casinos’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Las Vegas Sands||16.80%||31.11%||10.94%|
Valuation & Earnings
This table compares Las Vegas Sands and Ameristar Casinos’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Las Vegas Sands||$11.41 billion||4.69||$1.67 billion||$2.65||25.53|
Las Vegas Sands has higher revenue and earnings than Ameristar Casinos. Ameristar Casinos is trading at a lower price-to-earnings ratio than Las Vegas Sands, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Las Vegas Sands and Ameristar Casinos, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Las Vegas Sands||0||7||11||0||2.61|
Las Vegas Sands currently has a consensus target price of $64.62, indicating a potential downside of 4.49%.
Risk & Volatility
Las Vegas Sands has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Ameristar Casinos has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Las Vegas Sands beats Ameristar Casinos on 11 of the 12 factors compared between the two stocks.
Las Vegas Sands Company Profile
Las Vegas Sands Corp. is a developer of destination properties (integrated resorts) that feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company owns and operates integrated resorts in Asia and the United States. The Company’s principal operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States. In Macao, the Company’s segments include The Venetian Macao; Sands Cotai Central; The Parisian Macao; Four Seasons Macao; Sands Macao, and Other Asia (comprises the Company’s ferry operations and various other operations). In Singapore, the Company’s segments include Marina Bay Sands. In the United States, the Company’s segments include Las Vegas Operating Properties and Sands Bethlehem. The Company also offers players club loyalty programs at its properties, which provides access to rewards, privileges and members-only events.
Ameristar Casinos Company Profile
Ameristar Casinos, Inc.(Ameristar), is a developer, owner and operator of casino entertainment facilities in local and regional markets. The Company has eight properties in seven markets. Its portfolio of casinos consists of: Ameristar Casino Resort Spa St. Charles (serving the St. Louis, Missouri metropolitan area); Ameristar Casino Hotel Kansas City (serving the Kansas City metropolitan area); Ameristar Casino Hotel Council Bluffs (serving Omaha, Nebraska and southwestern Iowa); Ameristar Casino Resort Spa Black Hawk (serving the Denver metropolitan area); Ameristar Casino Hotel Vicksburg (serving Jackson, Mississippi and Monroe, Louisiana); Ameristar Casino Hotel East Chicago (serving the Chicagoland area); and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot, Nevada (serving Idaho and the Pacific Northwest). In August 2013, Pinnacle Entertainment Inc completed the acquisition of Ameristar Casinos, Inc.
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