Golden Entertainment (NASDAQ:GDEN – Get Free Report) and Wynn Resorts (NASDAQ:WYNN – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Dividends
Golden Entertainment pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Wynn Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Golden Entertainment pays out -400.0% of its earnings in the form of a dividend. Wynn Resorts pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wynn Resorts has raised its dividend for 1 consecutive years. Golden Entertainment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent recommendations and price targets for Golden Entertainment and Wynn Resorts, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golden Entertainment | 1 | 5 | 1 | 0 | 2.00 |
| Wynn Resorts | 0 | 3 | 13 | 1 | 2.88 |
Volatility and Risk
Golden Entertainment has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Wynn Resorts has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
70.7% of Golden Entertainment shares are held by institutional investors. Comparatively, 88.6% of Wynn Resorts shares are held by institutional investors. 30.5% of Golden Entertainment shares are held by insiders. Comparatively, 0.9% of Wynn Resorts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Golden Entertainment and Wynn Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Golden Entertainment | -0.95% | 0.51% | 0.22% |
| Wynn Resorts | 4.59% | -39.05% | 3.41% |
Earnings and Valuation
This table compares Golden Entertainment and Wynn Resorts”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Golden Entertainment | $634.91 million | 1.19 | -$6.04 million | ($0.25) | -114.20 |
| Wynn Resorts | $7.14 billion | 1.54 | $327.33 million | $3.00 | 35.33 |
Wynn Resorts has higher revenue and earnings than Golden Entertainment. Golden Entertainment is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.
Summary
Wynn Resorts beats Golden Entertainment on 13 of the 18 factors compared between the two stocks.
About Golden Entertainment
Golden Entertainment, Inc. owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations. The company was incorporated in 1998 and is headquartered in Las Vegas, Nevada.
About Wynn Resorts
Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.
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