The casino sector is one part of the broader gaming industry focused on leisure and resort properties and casino gaming activities. Companies in the sector own and operate casinos, resorts, hotels, ski facilities, and racetracks in various locations worldwide. Some big-name casino companies include Las Vegas Sands Corp. (LVS), Wynn Resorts Ltd. (WYNN), and MGM Resorts International (MGM). Many of these companies have experienced dramatic declines in revenue and earnings due to the COVID-19 pandemic this year, having to shut down properties in response to the health crisis. However, many are now in the process of reopening.

The performance of the casino sector can be gauged by the VanEck Vectors Gaming ETF (BJK), even though it's not a perfect benchmark as it also includes online gambling stocks. Online gaming stocks have fared better amid the pandemic. BJK has underperformed the broader market, providing investors with a total return of 9.6% over the past 12 months, below the Russell 1000's total return of 15.9%, as of September 15, 2020. All statistics in the tables below are as of September 16.

Here are the top 3 casino stocks with the best value, profitability, and most momentum.

Best Value Casino Stocks

These are the casino stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Casino Stocks

 

Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
MGM Resorts International (MGM) 23.74 11.7 6.2
Bluegreen Vacations Corp. (BXG) 5.35 0.4 18.3
Hilton Grand Vacations Inc. (HGV) 22.34 1.9 23.5

Source: YCharts

  • MGM Resorts International: MGM is a holding company that, through its subsidiaries, owns and operates casino resorts. The company's resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company announced this week that it will open Park MGM and NoMad Las Vegas on September 30, which will complete its opening of all of its properties after closures due to the COVID-19 pandemic.
  • Bluegreen Vacations Corp.: Bluegreen Vacations is a vacation ownership company. It markets and sells vacation ownership interests (VOIs) and manages resorts in leisure and urban destinations. Bluegreen reported a net loss of $8.2 million in Q2 2020 ended June 30, 2020, compared to a net loss of $6.1 million in the year-ago quarter. Revenue for the quarter fell 64.2%. The company noted that its business was adversely impacted by the pandemic, including temporary closure of resorts beginning in March 2020, many of which have reopened.
  • Hilton Grand Vacations Inc.: Hilton Grand Vacations operates manager timeshare resorts. The company markets and sells vacation ownership intervals, manages resorts in leisure and urban destinations, and operates a points-based vacation club. It offers services in North America, Europe, and the Asia Pacific.

Most Profitable Casino Stocks

This is the casino stock with the least year-over-year (YOY) earnings per share (EPS) decline for the most recent quarter. All other casino stocks we looked at reported losses for the most recent quarter. A company’s ability to maintain profitability in a difficult business environment can be a sign of good management and/or a strong business model.

Most Profitable Casino Stocks

 

Price ($) Market Cap ($B) EPS Growth (%)
Vail Resorts Inc. (MTN) 215.83 8.7 -47.5

Source: YCharts

  • Vail Resorts Inc.: Vail Resorts owns and operates resorts, hotels, and ski areas, and offers related services. Its resort properties include Vail Mountain, Beaver Creek Resort, Breckenridge Mountain, and Keystone Resort.

Casino Stocks with the Most Momentum

These are the casino stocks that had the highest total return over the last 12 months.

Casino Stocks with the Most Momentum

 

Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Penn National Gaming Inc (PENN) 68.23 9.4 226.1
Caesars Entertainment Inc. (CZR) 58.98 9.5 36.4
Boyd Gaming Corp. (BYD) 29.17 3.2 8.1
Russell 1000 N/A N/A 15.9
VanEck Vectors Gaming ETF (BJK) N/A N/A 9.6

Source: YCharts

  • Penn National Gaming Inc.: Penn National Gaming owns and manages casinos and racing facilities. Some of its properties include Hollywood Casino at Penn National Race Course, Tropicana Las Vegas, and Prairie State Gaming. Penn reported a net loss of $214.4 million in Q2 2020 ended June 30, 2020, compared to net income of $51.4 million in the year-ago quarter. Revenue for the quarter plunged 76.9%. The company said that its business was adversely impacted by the pandemic during the quarter, which began with all of its properties closed.
  • Caesars Entertainment Inc.: Caesars Entertainment operates casinos and hotels. It offers casino, poker, roulette, and other gaming facilities, as well as provides food and beverage services. The company recently announced that it has entered into a multi-year agreement with ESPN to feature sports-betting apps from William Hill Sports Book. The deal includes link integrations between ESPN's digital platforms and William Hill, which is a partner and the exclusive sports betting operator for Caesars Entertainment.
  • Boyd Gaming Corp.: Boyd Gaming owns and operates gaming and entertainment properties. It manages a variety of different types of casinos, including land-based, dockside riverboat, and barge-based casinos. It also owns hotels, breweries, resorts, and spas. Boyd Gaming recently announced the reopening of its Delta Downs Racetrack Casino Hotel in Louisiana after being closed due to damage from Hurricane Laura.