HomeMost PopularInvestingIs MGM Resorts a Better Investment Than Boston Scientific?

Is MGM Resorts a Better Investment Than Boston Scientific?

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When it comes to investing, it’s important to look for stocks that offer the potential for robust gains. In this analysis, we compare MGM Resorts stock and Boston Scientific stock, two companies from different sectors but with similar revenue bases. While both stocks have the potential for growth, MGM Resorts seems to have better prospects. Let’s dive into the analysis to understand why MGM Resorts might be a better pick.

1. Revenue Growth:

MGM Resorts has shown stronger revenue growth over the past three years, with an average annual growth rate of 21.1%. In comparison, Boston Scientific has had an average growth rate of 6.3%. This growth can be attributed to a recovery in Macau and increased tourist footfalls into the Las Vegas strip. On the other hand, Boston Scientific has seen an uptick in total procedures and new product launches. Looking ahead, Boston Scientific’s revenue is expected to grow at a CAGR of 6.3% to $16 billion in three years, while MGM Resorts’ revenue is projected to rise at a CAGR of 6.5% to $18 billion.

2. Profitability:

While Boston Scientific has a slight edge in profitability, with an operating margin of 13% compared to MGM Resorts’ 11%, it’s important to consider other factors. MGM Resorts has seen superior revenue growth and has a stronger cash position, with 9% cash as a percentage of assets compared to Boston Scientific’s 1%. Additionally, MGM Resorts trades at a lower valuation, with a trailing sales multiple of 0.9x compared to its historical average of 1.4x. Boston Scientific, on the other hand, trades at 5.3x compared to its historical average of 5.9x.

3. Overall Outlook:

Based on revenue growth, cash cushion, and valuation multiples, it appears that MGM Resorts offers better potential returns compared to Boston Scientific over the next three years. Although both stocks have the potential for growth, investors may be better off picking MGM Resorts.

Remember, investing involves risks, and it’s essential to conduct thorough research and analysis before making any investment decisions. While MGM Resorts shows promise, it’s always advisable to consider the broader market conditions and individual circumstances before making an investment.

Disclaimer:

The views and opinions expressed in this analysis are those of the author and do not necessarily reflect those of Nasdaq, Inc. It’s important to consider multiple sources and conduct your own research before making any investment decisions.

Interested in more market analysis and investment opportunities? Check out Boston Scientific’s Peers for valuable comparisons across different industries, or explore Peer Comparisons for insights into companies across various sectors. Remember to always invest with caution and consult a financial advisor if needed.

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