Noodles & Company (NASDAQ:NDLS) & MGM Resorts International (NYSE:MGM) Financial Review

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

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings and target prices for MGM Resorts International and Noodles & Company, as reported by MarketBeat.

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

MGM Resorts International presently has a consensus target price of $53.37, suggesting a potential upside of 23.05%. Given MGM Resorts International’s stronger consensus rating and higher probable upside, equities analysts clearly believe MGM Resorts International is more favorable than Noodles & Company.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MGM Resorts International $17.54 billion 0.62 $205.86 million $1.65 26.29
Noodles & Company $495.09 million 0.19 -$42.57 million ($4.01) -3.87

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.

Volatility & Risk

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

Insider and Institutional Ownership

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

Summary

MGM Resorts International beats Noodles & Company on 14 of the 15 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 Noodles & Company

(Get Free Report)

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.

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