Reviewing MGM Resorts International (NYSE:MGM) and Sharplink Gaming (NASDAQ:SBET)

MGM Resorts International (NYSE:MGMGet Free Report) and Sharplink Gaming (NASDAQ:SBETGet Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares MGM Resorts International and Sharplink Gaming”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MGM Resorts International $17.54 billion 0.54 $205.86 million $0.75 49.12
Sharplink Gaming $3.66 million 361.14 $10.10 million ($2.39) -2.81

MGM Resorts International has higher revenue and earnings than Sharplink Gaming. Sharplink Gaming 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.

Profitability

This table compares MGM Resorts International and Sharplink Gaming’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MGM Resorts International 1.17% 26.04% 2.19%
Sharplink Gaming -7.86% -2.26% -2.26%

Insider and Institutional Ownership

68.1% of MGM Resorts International shares are held by institutional investors. Comparatively, 13.8% of Sharplink Gaming shares are held by institutional investors. 3.1% of MGM Resorts International shares are held by company insiders. Comparatively, 3.4% of Sharplink Gaming shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

MGM Resorts International has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Sharplink Gaming has a beta of 11.28, indicating that its stock price is 1,028% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for MGM Resorts International and Sharplink Gaming, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGM Resorts International 4 7 8 1 2.30
Sharplink Gaming 1 1 5 1 2.75

MGM Resorts International currently has a consensus price target of $41.94, indicating a potential upside of 13.84%. Sharplink Gaming has a consensus price target of $27.43, indicating a potential upside of 308.16%. Given Sharplink Gaming’s stronger consensus rating and higher possible upside, analysts plainly believe Sharplink Gaming is more favorable than MGM Resorts International.

Summary

MGM Resorts International beats Sharplink Gaming on 9 of the 14 factors compared between the two stocks.

About MGM Resorts International

(Get Free Report)

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.

About Sharplink Gaming

(Get Free Report)

SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.

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