MGM Growth Properties (NYSE: MGP) and Strategic Hotels and Resorts (NYSE:BEE) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Dividends

MGM Growth Properties pays an annual dividend of $1.58 per share and has a dividend yield of 5.3%. Strategic Hotels and Resorts does not pay a dividend. MGM Growth Properties pays out 205.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

86.7% of MGM Growth Properties shares are held by institutional investors. 0.6% of MGM Growth Properties 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.

Valuation and Earnings

This table compares MGM Growth Properties and Strategic Hotels and Resorts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MGM Growth Properties $725.00 million 2.38 $613.53 million $0.77 38.86
Strategic Hotels and Resorts N/A N/A N/A N/A N/A

MGM Growth Properties has higher revenue and earnings than Strategic Hotels and Resorts.

Analyst Ratings

This is a summary of current ratings and recommmendations for MGM Growth Properties and Strategic Hotels and Resorts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGM Growth Properties 0 1 4 0 2.80
Strategic Hotels and Resorts 0 0 0 0 N/A

MGM Growth Properties presently has a consensus target price of $31.20, suggesting a potential upside of 4.28%. Given MGM Growth Properties’ higher probable upside, equities research analysts plainly believe MGM Growth Properties is more favorable than Strategic Hotels and Resorts.

Profitability

This table compares MGM Growth Properties and Strategic Hotels and Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MGM Growth Properties 6.21% 0.81% 0.48%
Strategic Hotels and Resorts 6.40% 5.76% 2.43%

Summary

MGM Growth Properties beats Strategic Hotels and Resorts on 6 of the 11 factors compared between the two stocks.

MGM Growth Properties Company Profile

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.

Strategic Hotels and Resorts Company Profile

Strategic Hotels & Resorts, Inc. (SHR) is a self-administered and self-managed real estate investment trust (REIT). The Company acquires and asset manages hotels. The Company owns land held for development including 50.7 acres of oceanfront land in Nayarit, Mexico; 13.8 acres of land in Scottsdale, Arizona adjacent to its Four Seasons Resort Scottsdale at Troon North, and a 20,000 square-foot oceanfront land parcel in Santa Monica, California adjacent to its Loews Santa Monica Beach Hotel. The Company’s hotels are operated under the brands of Fairmont, Four Seasons, Hyatt, InterContinental, JW Marriott, Loews, Marriott, Montage, Ritz-Carlton and Westin. The Hotel del Coronado is operated by a specialty management company, KSL Resorts.

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