No Drama At Las Vegas Sands Corp. (LVS)

MGM Resorts International (NYSE:MGM): The forgotten, smaller player

Las Vegas Sands has a market cap of $47 billion, while MGM Resorts International (NYSE:MGM) stands at barely $7 billion. Despite the difference, MGM Grand has invested heavily in the Macau growth story with a 35 story, 600 room casino resort that makes the casino the 6^th largest in the world. MGM is planning to invest another $2.5 billion in Macau in an attempt to take away market share from the bigger players.

MGM Resorts is also committed to returning capital to shareholders, and said MGM China has put in place a regular dividend distribution policy for up to 35% of its annual profits to be paid semi-annually. MGM China’s board will also consider putting forward special dividends from time to time, the parent company said. MGM China paid a $500 million dividend in March, of which $255 million was retained by the parent company.

Closing remarks

Las Vegas Sands is clearly the best investment choice based on their leg up over competitors, strong commitment to returning value to shareholders, and, most importantly, the vision of Mr Adelson to be one of the first in Macau, Singapore, and now the Cotai Strip. Competitors will be playing catch up for years, and investors should always invest in the leader, not the followers.

The article Investing in Las Vegas Sands Is No Gamble originally appeared on Fool.com and is written by Jayson Derrick.

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