In a recent financial analysis, comparisons between Las Vegas Sands Corp. and Capcom Co., Ltd. have highlighted significant differences in their investment appeal. Both companies are classified as large-cap consumer discretionary firms, but varying performance metrics suggest that one may be a more favorable stock option than the other.
Ownership and Institutional Investment
Institutional investors hold approximately 39.2% of Las Vegas Sands shares, while insider ownership stands at 1.2%. High institutional ownership typically indicates strong confidence among large investors regarding a company’s long-term potential. In contrast, Capcom does not disclose similar ownership figures, making direct comparisons challenging.
Profitability and Risk Assessment
When evaluating profitability, metrics such as net margins, return on equity, and return on assets become essential. Las Vegas Sands has demonstrated superior revenue and earnings figures compared to Capcom. This disparity suggests a different risk profile for investors, with Sands often perceived as a more stable investment based on its financial performance.
Both companies maintain healthy dividend payout ratios. Capcom offers an annual dividend of $0.07 per share, resulting in a dividend yield of 0.6%. In contrast, Las Vegas Sands provides a larger annual dividend of $1.00 per share, leading to a yield of 1.5%. Notably, Las Vegas Sands has a payout ratio of 45.2%, while Capcom’s is lower at 14.6%. The former’s consistent dividend growth over the past two years enhances its appeal as a dividend stock.
Analyst Ratings and Market Valuation
According to MarketBeat, Las Vegas Sands has a consensus target price of $67.52, indicating a potential upside of 0.89%. Analysts have given Sands a stronger consensus rating compared to Capcom, suggesting a preference for Sands among market experts.
In terms of valuation, while Las Vegas Sands exhibits higher revenue and earnings, Capcom trades at a lower price-to-earnings ratio. This presents Capcom as a more affordable option for investors seeking lower entry points into the market.
Company Profiles
Capcom Co., Ltd., established in 1979 and headquartered in Osaka, Japan, specializes in the planning, development, manufacturing, and distribution of video games across various platforms. The company operates through segments that include Digital Contents, Arcade Operations, and Amusement Equipment, and has successfully expanded into esports and multimedia adaptations.
On the other hand, Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada. The company develops and operates integrated resorts in Macao and Singapore, featuring accommodations, gaming, and entertainment options. Its portfolio includes notable resorts such as The Venetian Macao and Marina Bay Sands.
In summary, the analysis reveals that Las Vegas Sands outperforms Capcom in various critical financial metrics. Out of 18 factors evaluated, Las Vegas Sands leads in 14 categories, making it a compelling option for investors seeking growth and stability in the consumer discretionary sector.
