SPHR vs. WYNN: Which Vegas Entertainment Stock is Better?
Las Vegas isn’t just an oasis in the middle of the desert where people fly to get their gambling fix. Though casinos immediately come to mind when you hear of the Las Vegas strip, it’s not the only thing that makes the place truly unique. In fact, you don’t even need to gamble to have the time of your life in Vegas, with the rapidly growing number of Las Vegas entertainment options.
Therefore, in this piece, we’ll focus on two of the best Vegas entertainment stocks on the Strip and check in with TipRanks’ Comparison Tool to see which (SPHR or WYNN) offers more upside for 2024.
Sphere Entertainment (NYSE:SPHR)
The Sphere is a first-of-its-kind type of entertainment venue that’s only available in Las Vegas. The venue boasts the highest-resolution screen on Earth, with its 160,000-pixel by 160,000-pixel screen. You may have seen pictures of the venue from the outside, but it’s what’s on the inside, I believe, that makes the experience well worth the hefty price of admission. Though I’m impressed with the venue, I have to stay neutral until there’s more clarity regarding the long-term growth narrative.
The venue, which opened in late 2023, is currently showing U2, and tickets are not cheap. Unless you’re a massive fan of who’s performing or you get lucky on the slot machines, tickets in the Sphere may be unaffordable relative to the other entertainment options on the Vegas strip. Despite this, people aren’t shying away from packing into the 18,000-seat theatre. Indeed, part of the allure of the Sphere is the novelty.
That said, only time will tell how the venue holds up relative to rivals in the Vegas scene. Personally, I view the Sphere and its game-changing technologies as essentially reinventing the live event experience. Reportedly, the UFC (Ultimate Fighting Championship) has booked the venue for a future bout. It’s a big deal that could test what the futuristic venue is capable of.
It’s not just hosting events that make Sphere an intriguing play. The outside of the Sphere acts as a super-sized billboard capable of pulling in the big bucks. Reportedly, firms can rent out an ad on the outside of the Sphere in the ballpark of $450,000 per day.
For now, it seems a tad too early in the game to be loading up on the stock just because of how impressive it looks, outside or inside. The Sphere hopes to grow beyond Las Vegas. However, given how incredibly bright (and perhaps distracting) the venue’s exterior can be, I think it will be a challenge to grow into new markets following the recent mayoral blocking of Sphere’s bid to expand into the London market.
Indeed, Sphere seems like something that only Vegas can make possible at this juncture. As good as this is for Vegas, I view it as a potential roadblock standing in front of the firm’s long-term growth story. For this reason, I’m hesitant to pound the table on the stock this early in the game.
Is SPHR Stock a Buy, According to Analysts?
Sphere Entertainment stock is a Moderate Buy, according to analysts, with two Buys and three Holds assigned in the past three months. The average SPHR stock price target of $35.00 implies 11.6% upside potential.
Wynn Resorts (NASDAQ:WYNN)
If you’re looking for luxury in the Vegas hotel and a gaming experience, it’s hard to top Wynn Resorts, the firm behind the signature Wynn Resort and its Encore companion. Of course, Wynn also has significant exposure to Macau, which isn’t doing well amid China’s horrid slowdown. Still, I view ongoing strength in Vegas as a potential needle-mover for shares. As a premium player in the resort scene, I’m staying bullish on the stock for 2024.
WYNN stock has been a dud over the past five and 10 years, down 14% and 47%, respectively. The cyclical nature of Vegas travel has come into play. However, as the macro environment heals over time, I think Wynn, perhaps the best resort play in Vegas (and Macau), is worth a sizeable bet.
Deutsche Bank’s (NYSE:DB) Carlo Santarelli recently praised Wynn Resorts as one of the top gaming stocks for the year, citing sales expansion as one potential share price driver. Santarelli has a $124 price target on the stock, entailing more than 31% upside for the year ahead.
Is WYNN Stock a Buy, According to Analysts?
Wynn stock is a Strong Buy, according to analysts, with nine Buys and three Holds assigned in the past three months. The average WYNN stock price target of $112.14 implies 19.2% upside potential.
The Takeaway
From hockey games at the T-Mobile arena to the jaw-dropping venue over at the MSG Sphere, there’s no shortage of spectacles to draw in massive numbers of travelers to the timeless Vegas Strip. Sphere and Wynn are standout entertainment options that I view as intriguing plays for 2024. Nonetheless, at this juncture, analysts expect more upside (19.2%) from WYNN stock.
