Share prices of casino stocks have plummeted since the start of 2020 due to the COVID-19 pandemic. Though stocks in many other impacted sectors have recovered from March lows, share prices in the gambling industry remain down by as much as 50% year to date. This puts them in value stock territory, assuming the businesses in question fully recover.
While both Wynn Resorts (NASDAQ: WYNN) and MGM Resorts International (NYSE: MGM) will both gain from a rejuvenated casino business, one is well ahead in terms of benefiting from the growing online sports betting and gambling markets.
Image source: MGM Resorts.
Counting on Macau
Wynn has a much more concentrated hotel and casino portfolio than MGM. In 2019, Wynn received 70% of its total net revenue from its two Macau properties in China. Most of the balance came from Las Vegas, as the company’s Encore Boston Harbor property only opened in