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MGM vs. RACE: A Head-to-Head Stock Comparison

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Here’s a clear look at MGM and RACE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMGMRACE
Company NameMGM Resorts InternationalFerrari N.V.
CountryUnited StatesItaly
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryHotels, Restaurants & LeisureAutomobiles
Market Capitalization8.98 billion USD73.05 billion USD
ExchangeNYSENYSE
Listing DateMay 2, 1988October 21, 2015
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MGM and RACE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

MGM vs. RACE: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMGMRACE
5-Day Price Return3.08%3.59%
13-Week Price Return-4.45%-7.52%
26-Week Price Return3.50%-18.14%
52-Week Price Return-12.80%-15.65%
Month-to-Date Return2.56%1.56%
Year-to-Date Return-5.19%-14.67%
10-Day Avg. Volume6.58M0.59M
3-Month Avg. Volume4.76M0.46M
3-Month Volatility32.08%39.56%
Beta1.481.04

Profitability

Return on Equity (TTM)

MGM

2.42%

Hotels, Restaurants & Leisure Industry

Max
84.03%
Q3
40.12%
Median
17.38%
Q1
7.45%
Min
-33.94%

MGM’s Return on Equity of 2.42% is in the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

RACE

45.61%

Automobiles Industry

Max
28.52%
Q3
12.70%
Median
5.15%
Q1
-1.62%
Min
-18.19%

RACE’s Return on Equity of 45.61% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

MGM vs. RACE: A comparison of their Return on Equity (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Net Profit Margin (TTM)

MGM

0.40%

Hotels, Restaurants & Leisure Industry

Max
25.61%
Q3
14.65%
Median
8.66%
Q1
3.36%
Min
-9.83%

Falling into the lower quartile for the Hotels, Restaurants & Leisure industry, MGM’s Net Profit Margin of 0.40% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

RACE

22.91%

Automobiles Industry

Max
8.82%
Q3
5.80%
Median
2.77%
Q1
-1.08%
Min
-10.15%

RACE’s Net Profit Margin of 22.91% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

MGM vs. RACE: A comparison of their Net Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Operating Profit Margin (TTM)

MGM

5.60%

Hotels, Restaurants & Leisure Industry

Max
45.80%
Q3
22.44%
Median
14.98%
Q1
6.59%
Min
-15.28%

MGM’s Operating Profit Margin of 5.60% is in the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

RACE

29.16%

Automobiles Industry

Max
13.07%
Q3
6.94%
Median
4.50%
Q1
-2.17%
Min
-13.85%

RACE’s Operating Profit Margin of 29.16% is exceptionally high, placing it well above the typical range for the Automobiles industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

MGM vs. RACE: A comparison of their Operating Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Profitability at a Glance

SymbolMGMRACE
Return on Equity (TTM)2.42%45.61%
Return on Assets (TTM)0.17%16.76%
Net Profit Margin (TTM)0.40%22.91%
Operating Profit Margin (TTM)5.60%29.16%
Gross Profit Margin (TTM)44.65%51.20%

Financial Strength

Current Ratio (MRQ)

MGM

1.23

Hotels, Restaurants & Leisure Industry

Max
2.73
Q3
1.63
Median
1.12
Q1
0.73
Min
0.18

MGM’s Current Ratio of 1.23 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.

RACE

2.08

Automobiles Industry

Max
2.13
Q3
1.52
Median
1.29
Q1
1.09
Min
0.47

RACE’s Current Ratio of 2.08 is in the upper quartile for the Automobiles industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

MGM vs. RACE: A comparison of their Current Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MGM

2.40

Hotels, Restaurants & Leisure Industry

Max
11.29
Q3
4.71
Median
1.65
Q1
0.27
Min
0.00

MGM’s Debt-to-Equity Ratio of 2.40 is typical for the Hotels, Restaurants & Leisure industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

RACE

0.89

Automobiles Industry

Max
2.07
Q3
1.17
Median
0.60
Q1
0.30
Min
0.05

RACE’s Debt-to-Equity Ratio of 0.89 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MGM vs. RACE: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Interest Coverage Ratio (TTM)

MGM

3.29

Hotels, Restaurants & Leisure Industry

Max
21.72
Q3
11.40
Median
4.02
Q1
1.19
Min
-11.84

MGM’s Interest Coverage Ratio of 3.29 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.

RACE

28.11

Automobiles Industry

Max
77.87
Q3
37.26
Median
13.42
Q1
1.43
Min
-49.07

RACE’s Interest Coverage Ratio of 28.11 is positioned comfortably within the norm for the Automobiles industry, indicating a standard and healthy capacity to cover its interest payments.

MGM vs. RACE: A comparison of their Interest Coverage Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Financial Strength at a Glance

SymbolMGMRACE
Current Ratio (MRQ)1.232.08
Quick Ratio (MRQ)1.011.61
Debt-to-Equity Ratio (MRQ)2.400.89
Interest Coverage Ratio (TTM)3.2928.11

Growth

Revenue Growth

MGM vs. RACE: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MGM vs. RACE: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MGM

0.00%

Hotels, Restaurants & Leisure Industry

Max
6.81%
Q3
2.73%
Median
0.74%
Q1
0.00%
Min
0.00%

MGM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

RACE

0.76%

Automobiles Industry

Max
10.85%
Q3
4.84%
Median
2.53%
Q1
0.00%
Min
0.00%

RACE’s Dividend Yield of 0.76% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

MGM vs. RACE: A comparison of their Dividend Yield (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Dividend Payout Ratio (TTM)

MGM

0.09%

Hotels, Restaurants & Leisure Industry

Max
128.39%
Q3
61.60%
Median
21.91%
Q1
0.00%
Min
0.00%

MGM’s Dividend Payout Ratio of 0.09% is within the typical range for the Hotels, Restaurants & Leisure industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RACE

44.33%

Automobiles Industry

Max
131.16%
Q3
60.59%
Median
36.73%
Q1
5.97%
Min
0.00%

RACE’s Dividend Payout Ratio of 44.33% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MGM vs. RACE: A comparison of their Dividend Payout Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Dividend at a Glance

SymbolMGMRACE
Dividend Yield (TTM)0.00%0.76%
Dividend Payout Ratio (TTM)0.09%44.33%

Valuation

Price-to-Earnings Ratio (TTM)

MGM

128.19

Hotels, Restaurants & Leisure Industry

Max
56.96
Q3
33.82
Median
21.30
Q1
15.75
Min
6.06

At 128.19, MGM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Hotels, Restaurants & Leisure industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

RACE

43.40

Automobiles Industry

Max
31.95
Q3
22.20
Median
11.17
Q1
7.39
Min
4.54

At 43.40, RACE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Automobiles industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

MGM vs. RACE: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Price-to-Sales Ratio (TTM)

MGM

0.52

Hotels, Restaurants & Leisure Industry

Max
7.19
Q3
3.99
Median
1.93
Q1
1.26
Min
0.17

In the lower quartile for the Hotels, Restaurants & Leisure industry, MGM’s P/S Ratio of 0.52 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

RACE

9.94

Automobiles Industry

Max
1.49
Q3
0.92
Median
0.47
Q1
0.24
Min
0.09

With a P/S Ratio of 9.94, RACE trades at a valuation that eclipses even the highest in the Automobiles industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MGM vs. RACE: A comparison of their Price-to-Sales Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Price-to-Book Ratio (MRQ)

MGM

3.53

Hotels, Restaurants & Leisure Industry

Max
24.89
Q3
11.60
Median
4.91
Q1
2.29
Min
0.37

MGM’s P/B Ratio of 3.53 is within the conventional range for the Hotels, Restaurants & Leisure industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

RACE

22.78

Automobiles Industry

Max
2.87
Q3
1.83
Median
0.79
Q1
0.47
Min
0.18

At 22.78, RACE’s P/B Ratio is at an extreme premium to the Automobiles industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

MGM vs. RACE: A comparison of their Price-to-Book Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Valuation at a Glance

SymbolMGMRACE
Price-to-Earnings Ratio (TTM)128.1943.40
Price-to-Sales Ratio (TTM)0.529.94
Price-to-Book Ratio (MRQ)3.5322.78
Price-to-Free Cash Flow Ratio (TTM)6.5250.91