Buy: Wynn Resorts
I wouldn’t have guessed this, but through the first nine months of 2013, Wynn Resorts (WYNN) generated 71% of its overall revenue from Macau casinos — compared to 64% for LVS. Mind you, LVS’s Macau revenues were $3.5 billion greater, but it definitely shows a commitment by Steve Wynn to the Macau market.
In fact, with the first phase of its 51-acre Wynn Palace expected to open by February 2016, the casino operator will only get bigger in Macau. The $4 billion development is expected to have 500 gambling tables, 2,000 hotel rooms, 10 restaurants, a nightclub and some high-end retail. Its second phase, Wynn Diamond, will be primarily a non-casino development including a 15,000-sear auditorium for major concerts, etc.
The best part about WYNN — well, besides Steve Wynn himself — is that the stock has gained roughly 50% in the past 52 weeks. That’s the same return as LVS, yet WYNN’s enterprise value is 12.8 times EBITDA — 15% less than its competitor’s. From a value standpoint, WYNN is the better buy.