Head-To-Head Contrast: Wynn Resorts (NASDAQ:WYNN) and Bloomin’ Brands (NASDAQ:BLMN)

Bloomin’ Brands (NASDAQ:BLMN) and Wynn Resorts (NASDAQ:WYNN) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bloomin’ Brands and Wynn Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bloomin’ Brands	0	10	0	1	2.18
Wynn Resorts	0	2	17	1	2.95

Bloomin’ Brands presently has a consensus target price of $10.60, suggesting a potential upside of 6.57%. Wynn Resorts has a consensus target price of $130.12, suggesting a potential upside of 72.11%. Given Wynn Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Wynn Resorts is more favorable than Bloomin’ Brands.

Volatility and Risk

Bloomin’ Brands has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Wynn Resorts has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bloomin’ Brands and Wynn Resorts”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bloomin’ Brands	$3.96 billion	0.22	$8.24 million	$0.31	32.10
Wynn Resorts	$7.14 billion	1.09	$327.33 million	$4.03	18.76

Wynn Resorts has higher revenue and earnings than Bloomin’ Brands. Wynn Resorts is trading at a lower price-to-earnings ratio than Bloomin’ Brands, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

88.6% of Wynn Resorts shares are held by institutional investors. 1.2% of Bloomin’ Brands shares are held by company insiders. Comparatively, 0.9% of Wynn Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Bloomin’ Brands and Wynn Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bloomin’ Brands	0.70%	28.95%	3.47%
Wynn Resorts	6.05%	-46.52%	3.60%

Summary

Wynn Resorts beats Bloomin’ Brands on 11 of the 14 factors compared between the two stocks.

About Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.

About Wynn Resorts

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.