Vail Resorts (NYSE: MTN) and International Game Technology (NYSE:IGT) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
This table compares Vail Resorts and International Game Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|International Game Technology||-21.64%||10.28%||2.14%|
Institutional and Insider Ownership
98.5% of Vail Resorts shares are held by institutional investors. Comparatively, 40.5% of International Game Technology shares are held by institutional investors. 3.3% of Vail Resorts shares are held by company insiders. Comparatively, 1.2% of International Game Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Vail Resorts has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, International Game Technology has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Vail Resorts and International Game Technology, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|International Game Technology||0||0||5||0||3.00|
Vail Resorts currently has a consensus target price of $249.00, indicating a potential upside of 3.47%. International Game Technology has a consensus target price of $32.40, indicating a potential upside of 6.79%. Given International Game Technology’s stronger consensus rating and higher probable upside, analysts plainly believe International Game Technology is more favorable than Vail Resorts.
Valuation & Earnings
This table compares Vail Resorts and International Game Technology’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vail Resorts||$1.91 billion||5.10||$210.55 million||$5.22||46.10|
|International Game Technology||$4.94 billion||1.24||-$1.07 billion||$1.52||19.96|
Vail Resorts has higher earnings, but lower revenue than International Game Technology. International Game Technology is trading at a lower price-to-earnings ratio than Vail Resorts, indicating that it is currently the more affordable of the two stocks.
Vail Resorts pays an annual dividend of $5.88 per share and has a dividend yield of 2.4%. International Game Technology pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. Vail Resorts pays out 112.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. International Game Technology pays out 52.6% of its earnings in the form of a dividend. Vail Resorts has raised its dividend for 7 consecutive years. International Game Technology is clearly the better dividend stock, given its higher yield and lower payout ratio.
Vail Resorts beats International Game Technology on 11 of the 17 factors compared between the two stocks.
Vail Resorts Company Profile
Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and urban ski areas in the United States. The company operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 11 mountain resorts, including Vail, Beaver Creek, Breckenridge, and Keystone resorts in Colorado; Park City Mountain resort in Utah; Heavenly, Northstar, and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in Canada; Stowe Mountain resort in Northern Vermont; and Perisher in Australia, as well as three urban ski areas, such as Wilmot Mountain in Wisconsin, Afton Alps in Minnesota, and Mount Brighton in Michigan. Its resorts offer various winter and summer recreational activities, including skiing, snowboarding, snowshoeing, snowtubing, sightseeing, mountain biking, guided hiking, zip lines, challenge ropes courses, alpine slides and mountain coasters, children's activities, and other recreational activities; and ski and snowboard lessons, equipment rental and retail merchandise services, dining venues, private club operations, and other winter and summer recreational activities. This segment also leases its owned and leased commercial space to third party operators; and provides real estate brokerage services. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand, and other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates approximately 4,700 owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties in and around the company's resort communities. Vail Resorts, Inc. was founded in 1997 and is based in Broomfield, Colorado.
International Game Technology Company Profile
International Game Technology PLC operates and provides technology products and services across lotteries, electronic gaming machines, sports betting, and interactive gaming markets worldwide. The company operates through: North America Gaming and Interactive, North America Lottery, International, and Italy segments. It designs, sells, and operates a suite of point-of-sale terminals that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. The company also provides video lottery terminals (VLT), VLT central systems, and VLT games to government customers; and amusement with prize machines and games to licensed operators. In addition, it provides sports betting platform that offers betting on sports and motor sports events, as well as non-sporting events; interactive and social gaming, which enables game play through the Internet; gaming management systems for casino management, customer relationship management, patron management, and server-based gaming; and designs, develops, manufactures, and provides cabinets, games, systems, and software. Further, the company processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfers services. Additionally, it designs, manufactures, and distributes poker, table games, slot games, bingo, iLottery, virtual reality, mobile-to-retail products, player management systems, and market intelligence services. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was incorporated in 2014 and is headquartered in London, the United Kingdom.
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