Financial Contrast: Extended Stay America (NYSE:STAY) vs. Las Vegas Sands (NYSE:LVS)

Extended Stay America (NYSE:STAY) and Las Vegas Sands (NYSE:LVS) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Profitability

This table compares Extended Stay America and Las Vegas Sands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Extended Stay America N/A N/A N/A
Las Vegas Sands 14.01% 35.77% 10.86%

Dividends

Extended Stay America pays an annual dividend of $0.92 per share and has a dividend yield of 6.3%. Las Vegas Sands pays an annual dividend of $3.08 per share and has a dividend yield of 5.5%. Las Vegas Sands pays out 92.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extended Stay America has increased its dividend for 4 consecutive years and Las Vegas Sands has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Extended Stay America and Las Vegas Sands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extended Stay America 0 3 7 0 2.70
Las Vegas Sands 0 10 5 0 2.33

Extended Stay America presently has a consensus price target of $18.90, suggesting a potential upside of 30.34%. Las Vegas Sands has a consensus price target of $68.65, suggesting a potential upside of 22.39%. Given Extended Stay America’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Extended Stay America is more favorable than Las Vegas Sands.

Earnings and Valuation

This table compares Extended Stay America and Las Vegas Sands’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Extended Stay America N/A N/A N/A N/A N/A
Las Vegas Sands $13.73 billion 3.14 $2.41 billion $3.32 16.89

Las Vegas Sands has higher revenue and earnings than Extended Stay America.

Insider & Institutional Ownership

96.7% of Extended Stay America shares are held by institutional investors. Comparatively, 36.4% of Las Vegas Sands shares are held by institutional investors. 0.7% of Extended Stay America shares are held by insiders. Comparatively, 10.5% of Las Vegas Sands shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

About Extended Stay America

Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2018, it had 599 hotels and approximately 66,000 rooms, as well as managed 26 hotels under the Extended Stay America brand. It serves customers in the mid-priced extended stay segment. The company also relicenses Extended Stay America brand to unaffiliated third parties. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.

About Las Vegas Sands

Las Vegas Sands Corp., together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the United States. It owns and operates The Venetian Macao Resort Hotel, the Sands Cotai Central, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People's Republic of China; and iconic Marina Bay Sands in Singapore. The company also owns and operates The Venetian Resort Hotel Casino on the Las Vegas Strip; the Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Casino Resort Bethlehem in Bethlehem, Pennsylvania. Its integrated resorts feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada.

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