Meridian (NASDAQ:MRDN) vs. Vail Resorts (NYSE:MTN) Financial Analysis

Vail Resorts (NYSE:MTN) and Meridian (NASDAQ:MRDN) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Vail Resorts has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Meridian has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Vail Resorts and Meridian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vail Resorts	5.38%	21.88%	2.67%
Meridian	-41.41%	-117.87%	-58.87%

Insider & Institutional Ownership

94.9% of Vail Resorts shares are owned by institutional investors. Comparatively, 2.7% of Meridian shares are owned by institutional investors. 1.2% of Vail Resorts shares are owned by insiders. Comparatively, 24.0% of Meridian shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Vail Resorts and Meridian”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vail Resorts	$2.96 billion	1.62	$280.00 million	$4.40	30.66
Meridian	$182.86 million	0.94	-$89.90 million	($6.74)	-2.01

Vail Resorts has higher revenue and earnings than Meridian. Meridian is trading at a lower price-to-earnings ratio than Vail Resorts, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Vail Resorts and Meridian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vail Resorts	2	8	5	0	2.20
Meridian	1	0	0	0	1.00

Vail Resorts presently has a consensus price target of $149.83, indicating a potential upside of 11.06%. Meridian has a consensus price target of $21.60, indicating a potential upside of 59.41%. Given Meridian’s higher possible upside, analysts clearly believe Meridian is more favorable than Vail Resorts.

Summary

Vail Resorts beats Meridian on 12 of the 14 factors compared between the two stocks.

About Vail Resorts

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.

About Meridian

Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region. The RKings & CFAC segment is involved in pay-to-enter prize competitions and trade promotions conducted in the United Kingdom and Australia. It generates the majority of its revenue from the MeridianBet Group segment.