The casino sector is part of the wider gaming industry focused on leisure and recreational facilities and casino gaming activities. Companies in this sector own and operate casinos, resorts, hotels, ski facilities and racetracks around the world. This sector also includes online gambling companies. Major casino companies in the sector include Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Resorts International.
The COVID-19 pandemic and related restrictions have had an adverse impact on many companies in the casino sector. However, the industry has rebounded sharply as restrictions eased. Las Vegas Strip gambling revenue for H1 2022 was 36% higher than the first half of 2021 and even higher than the first half of 2019, before the pandemic.
The VanEck Gaming ETF (BJK), and exchange traded fundis used as a benchmark to measure the performance of the casino industry. However, investors should note that it includes non-casino gambling stocks that have different investment characteristics, such as DraftKings Inc. online sports betting company. BJK has significantly underperformed the broader market, providing investors with a total return of -28.6% compared to the Russell 1000’s total return of -13.8% over the past 12 months. This market performance data and all statistics in the tables below are as of September 16, 2022.
Here are the top three casino stocks with the best value, fastest growth and best performance.
These are casino stocks with the lowest 12-month lag price-earnings (P/E) ratio.. Because profits can be returned to shareholders in the form of dividends and buybacksa low P/E ratio indicates that you are paying less for every dollar of profit generated.
|Best Value Casino Stocks|
|Price ($)||Market capitalization (market capitalization) ($B)||12-month trailing P/E ratio|
|MGM Resorts International (MGM)||33,36||13.1||4.7|
|Boyd Gaming Corp. (DWELLING)||51.85||5.5||10.5|
|Red Rock Resorts Inc. (RRR)||38.64||2.3||10.7|
- MGM Resorts International: MGM Resorts International is a global entertainment company. It owns and operates hotels and casinos, meeting and conference facilities. The company also provides theatrical entertainment, restaurants, nightlife and a variety of retail offerings. MGM reported Q2 2022 earnings on August 3. Net income rose to $1.8 billion, including the gain from the deconsolidation of MGM Growth Properties LLC. Sales were up 44% year-on-year (YOY).
- Boyd Gaming Corp.: Boyd Gaming owns and operates gaming properties throughout the United States. It also operates entertainment, restaurants, shops and recreational facilities on its properties. On September 15, the company announced a quarterly cash dividend of $0.15 per share. The dividend is payable on October 15 to shareholders as of September 30, 2022.
- Red Rock Resorts Inc.: Red Rock Resorts is a gaming, development and management company that owns and manages casinos and entertainment facilities. In addition to casino games, it also offers entertainment venues, cinemas, bowling and banquet facilities.
These are the best casino stocks by rating and grow a model that ranks companies based on a 50/50 weighting of their most recent quarterly year-over-year sales percentage growth and their most recent quarterly year-over-year growth earnings per share (EPS) grow. Both sales and profit are decisive factors for the company’s success. Therefore, ranking companies by only one growth metric makes the ranking susceptible to a given quarter’s accounting anomalies (such as changes in tax laws or restructuring costs) that can make one or the other number unrepresentative of the business in general.
|Fastest growing casino stock|
|Price ($)||Market Cap ($B)||EPS growth (%)||Income growth (%)|
|MGM Resorts International (MGM)||33,36||13.1||2,900||44.0|
|Hilton Grand Vacations Inc. (HGV)||38.67||4.6||500.0||183.8|
|Marriott Vacations Worldwide Corp. (VAC)||141.53||5.6||1,880||18.9|
- MGM Resorts International: See above for company description.
- Hilton Grand Vacations Inc.: Hilton Grand Vacations is a global timeshare company. The company develops and operates a system of branded vacation resorts in a number of vacation destinations, including Las Vegas. Hilton Grand Vacations reported Q2 2022 earnings on Aug. 9. Net income grew more than eightfold as revenue nearly tripled year-over-year. Both the company’s real estate sales and financing segment, as well as the resort operation segment and club management, saw significant growth during this period.
- Marriott Vacations Worldwide Corp.: Marriott Vacations Worldwide is a global vacation company offering vacation ownership, rentals, resort and property management and related services. It provides more than 120 holiday resorts worldwide. Marriott announced on September 9 that it will pay a quarterly cash dividend of $0.62 per share of common stock. The dividend is payable on October 6 to shareholders as of September 22, 2022.
These are the casino stocks that had the best returns or the smallest declines in total return over the last 12 months of the companies we looked at.
|Best performing casino promotions|
|Price ($)||Market Cap ($B)||12 month total return (%)|
|Las Vegas Sands Corp. (ME AGAINST)||38.64||29.5||3.0|
|Marriott Vacations Worldwide Corp. (VAC)||141.53||5.6||-6.8|
|Red Rock Resorts Inc. (YYYY)||38.64||2.3||-10.3|
|VanEck Gaming ETF (BJK)||ON||ON||– 28.6|
- Las Vegas Sands Corp: Las Vegas Sands is a developer and operator of integrated resort facilities. Its property portfolio includes Marina Bay Sands, The Venetian Macao, Sands Macao and others. On September 14, the company announced that it had applied for a new 10-year gaming concession in Macau through its Sands China group.
- Marriott Vacations Worldwide Corp.: See above for company description.
- Red Rock Resorts Inc.: See above for company description.
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