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MGM vs TXRH

MGM
MGM Resorts International
NEUTRAL
Price
$39.27
Market Cap
$10.05B
Sector
Consumer Cyclical
AI Confidence
85%
TXRH
Texas Roadhouse, Inc.
BEARISH
Price
$161.05
Market Cap
$10.62B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
MGM
51.67
TXRH
26.4
Forward P/E
MGM
16.97
TXRH
21.14
P/B Ratio
MGM
4.17
TXRH
7.27
P/S Ratio
MGM
0.57
TXRH
1.81
EV/EBITDA
MGM
17.06
TXRH
16.84

Profitability

Gross Margin
MGM
44.42%
TXRH
16.53%
Operating Margin
MGM
7.06%
TXRH
6.53%
Profit Margin
MGM
1.17%
TXRH
6.9%
ROE
MGM
14.89%
TXRH
29.02%
ROA
MGM
2.0%
TXRH
8.81%

Growth

Revenue Growth
MGM
6.0%
TXRH
3.1%
Earnings Growth
MGM
115.7%
TXRH
-25.9%

Financial Health

Debt/Equity
MGM
9.63
TXRH
0.66
Current Ratio
MGM
1.23
TXRH
0.5
Quick Ratio
MGM
1.03
TXRH
0.38

Dividends

Dividend Yield
MGM
--
TXRH
1.83%
Payout Ratio
MGM
0.0%
TXRH
44.59%

AI Verdict

MGM NEUTRAL

MGM presents a dichotomy between explosive earnings recovery and precarious financial leverage. While the Piotroski F-Score of 4/9 indicates stable but mediocre financial health, the company is trading at a significant premium to its Graham Number ($12.68) and Intrinsic Value ($22.42). Massive YoY earnings growth (115.7%) and a favorable PEG ratio (0.97) suggest strong momentum, but these are offset by an alarming Debt/Equity ratio of 9.63 and thin net profit margins.

Strengths
Explosive earnings growth (YoY EPS +115.7%)
Attractive PEG ratio (0.97) suggesting growth justifies valuation
Strong earnings beat track record (3/4 recent quarters)
Risks
Extreme leverage with a Debt/Equity ratio of 9.63
Very thin net profit margins (1.17%)
Current price ($39.27) is significantly overvalued relative to Graham and Intrinsic baselines
TXRH BEARISH

TXRH exhibits a concerning divergence between its current market price ($161.05) and its deterministic value, with a Piotroski F-Score of 4/9 indicating only stable to weak financial health. The stock trades at a massive premium to both its Graham Number ($55.14) and Intrinsic Value ($42.70), while fundamental growth has stalled with earnings plummeting -25.9% YoY. This valuation gap is exacerbated by a streak of four consecutive earnings misses and bearish insider activity, suggesting the current price is unsupported by underlying financial performance.

Strengths
Strong Return on Equity (ROE) of 29.02%
Positive profit margins (6.90%) compared to negative sector averages
Manageable Debt/Equity ratio of 0.66
Risks
Severe earnings contraction (-25.9% YoY)
Poor liquidity indicated by a Current Ratio of 0.50 and Quick Ratio of 0.38
Consistent failure to meet earnings estimates (0/4 beats in last 4 quarters)

Compare Another Pair

MGM vs TXRH: Head-to-Head Comparison

This page compares MGM Resorts International (MGM) and Texas Roadhouse, Inc. (TXRH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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