Analyzing MGM Resorts International (NYSE:MGM) & Six Flags Entertainment (NYSE:FUN)

Six Flags Entertainment (NYSE:FUN) and MGM Resorts International (NYSE:MGM) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Six Flags Entertainment has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, MGM Resorts International has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Earnings and Valuation

This table compares Six Flags Entertainment and MGM Resorts International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Six Flags Entertainment	$3.10 billion	0.30	-$1.60 billion	($17.32)	-0.53
MGM Resorts International	$17.54 billion	0.47	$205.86 million	$2.63	12.36

MGM Resorts International has higher revenue and earnings than Six Flags Entertainment. Six Flags Entertainment 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 Ratings

This is a summary of current recommendations and price targets for Six Flags Entertainment and MGM Resorts International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Six Flags Entertainment	2	7	7	0	2.31
MGM Resorts International	3	8	9	2	2.45

Six Flags Entertainment currently has a consensus target price of $16.92, indicating a potential upside of 84.89%. MGM Resorts International has a consensus target price of $44.29, indicating a potential upside of 36.31%. Given Six Flags Entertainment’s higher probable upside, research analysts clearly believe Six Flags Entertainment is more favorable than MGM Resorts International.

Institutional and Insider Ownership

64.7% of Six Flags Entertainment shares are owned by institutional investors. Comparatively, 68.1% of MGM Resorts International shares are owned by institutional investors. 2.1% of Six Flags Entertainment shares are owned by company insiders. Comparatively, 3.4% of MGM Resorts International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Six Flags Entertainment and MGM Resorts International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Six Flags Entertainment	-57.25%	7.43%	0.38%
MGM Resorts International	3.92%	20.58%	1.69%

Summary

MGM Resorts International beats Six Flags Entertainment on 14 of the 15 factors compared between the two stocks.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

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.