Head-To-Head Analysis: MGM Resorts International (NYSE:MGM) vs. Noodles & Company (NASDAQ:NDLS)

Noodles & Company (NASDAQ:NDLS) and MGM Resorts International (NYSE:MGM) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Institutional and Insider Ownership

65.7% of Noodles & Company shares are owned by institutional investors. Comparatively, 68.1% of MGM Resorts International shares are owned by institutional investors. 2.8% of Noodles & Company shares are owned by insiders. Comparatively, 3.4% of MGM Resorts International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Noodles & Company and MGM Resorts International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noodles & Company	-4.71%	N/A	-3.40%
MGM Resorts International	2.40%	23.30%	1.90%

Risk & Volatility

Noodles & Company has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, MGM Resorts International has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Valuation and Earnings

This table compares Noodles & Company and MGM Resorts International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noodles & Company	$495.09 million	0.18	-$42.57 million	($4.01)	-3.71
MGM Resorts International	$17.76 billion	0.61	$205.86 million	$1.65	26.30

MGM Resorts International has higher revenue and earnings than Noodles & Company. Noodles & Company is trading at a lower price-to-earnings ratio than MGM Resorts International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Noodles & Company and MGM Resorts International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noodles & Company	1	0	0	0	1.00
MGM Resorts International	2	8	10	2	2.55

MGM Resorts International has a consensus price target of $53.37, suggesting a potential upside of 23.00%. Given MGM Resorts International’s stronger consensus rating and higher possible upside, analysts plainly believe MGM Resorts International is more favorable than Noodles & Company.

Summary

MGM Resorts International beats Noodles & Company on 14 of the 15 factors compared between the two stocks.

About Noodles & Company

Noodles & Co. engages in the business of development and operation of fast-casual restaurants that serve noodle and pasta dishes, soups, salads, and appetizers. The firm also offers pleasant dining, pick-up, and delivery experiences by quickly preparing fresh food with friendly service. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.