MGM Growth Properties (NYSE: MGP) and Park Hotels & Resorts (NYSE:PK) are both mid-cap financials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
This is a summary of recent ratings for MGM Growth Properties and Park Hotels & Resorts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MGM Growth Properties||0||2||5||0||2.71|
|Park Hotels & Resorts||1||6||5||0||2.33|
This table compares MGM Growth Properties and Park Hotels & Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MGM Growth Properties||5.46%||0.73%||0.43%|
|Park Hotels & Resorts||94.05%||43.23%||26.44%|
MGM Growth Properties pays an annual dividend of $1.68 per share and has a dividend yield of 6.3%. Park Hotels & Resorts pays an annual dividend of $2.20 per share and has a dividend yield of 8.1%. MGM Growth Properties pays out 247.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Hotels & Resorts pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares MGM Growth Properties and Park Hotels & Resorts’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MGM Growth Properties||$765.70 million||2.47||$41.77 million||$0.68||39.22|
|Park Hotels & Resorts||$2.79 billion||2.08||$2.63 billion||$1.10||24.55|
Park Hotels & Resorts has higher revenue and earnings than MGM Growth Properties. Park Hotels & Resorts is trading at a lower price-to-earnings ratio than MGM Growth Properties, indicating that it is currently the more affordable of the two stocks.
Park Hotels & Resorts beats MGM Growth Properties on 9 of the 12 factors compared between the two stocks.
About MGM Growth Properties
MGM Growth Properties LLC is a real estate investment trust engaged in the acquisition, ownership and leasing of destination entertainment and leisure resorts, whose amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. Its portfolio consists of approximately 10 destination resorts. It has over six entertainment and gaming-related properties located on the Las Vegas Strip, including Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor and Excalibur, and The Park, a dining and entertainment complex located between New York-New York and Monte Carlo. Outside of Las Vegas, it owns over four casino resort properties, including MGM Grand Detroit in Detroit, Michigan, Borgata Hotel Casino & Spa in Atlantic City, New Jersey, and Beau Rivage and Gold Strike Tunica, both of which are located in Mississippi. It operates approximately 27,330 hotel rooms, over 200 restaurants, approximately 100 retail outlets and over 20 entertainment venues.
About Park Hotels & Resorts
Park Hotels & Resorts Inc. is a lodging real estate company. The Company has a portfolio of hotels and resorts. The Company operates through ownership segment, which includes all of its hotel properties. As of December 31, 2016, the Company’s portfolio consisted of 67 hotels and resorts with over 35,000 rooms located in the United States and international markets. Its portfolio includes hotels in areas, such as New York City, Washington, D.C., Chicago, San Francisco and London; resorts in leisure destinations, including Hawaii, Orlando and Key West, and a range of properties adjacent to gateway airports, such as Los Angeles International, Chicago O’Hare, Boston Logan and Miami Airport, and select suburban locations. The Company’s brand affiliations include Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton by Hilton, Hilton Hotels & Resorts, Hilaton Garden Inn, Curio – A Collection by Hilton, and Waldorf Astoria Hotels & Resorts.
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