Las Vegas Sands Lone Gaming Company on List of Best-Managed Firms

Posted on: December 12, 2022, 01:19h. 

Last updated on: December 12, 2022, 01:35h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Las Vegas Sands (NYSE: LVS) is the lone gaming operator on the Drucker Institute’s 2022 list of the 250 best-managed companies.

Las Vegas Sands
The infinity pool at Marina Bay Sands in Singapore. Operator Las Vegas Sands made the list of 250 best-managed companies. (Image: Marina Bay Sands)

Microsoft (NASDAQ: MSFT) tops the rankings, followed by Apple (NASDAQ: AAPL). The highest-rated firm from the consumer discretionary sector — the group that’s home to gaming companies — is Amazon (NASDAQ: AMZN), in the eighth spot. Sands ranks 180.

The Drucker Institute brings together five dimensions of corporate performance—Customer Satisfaction, Employee Engagement and Development, Innovation, Social Responsibility and Financial Strength—to create a holistic perspective based on Peter Drucker’s core principles,” according to the research firm.

The Drucker Institute is part of Claremont Graduate University in Claremont, Calif., and its annual rankings focus on companies that trade on the Nasdaq or the New York Stock Exchange. Other requirements for inclusion in the rankings include membership in the S&P 500 as of the end of the second quarter, and a market capitalization of at least $10 billion as of the same date. Additionally, companies had to have revenue of at least $3 billion as of the end of the first quarter.

Prestigious Inclusion for Las Vegas Sands

Inclusion on the Drucker Institute’s list of the best-managed companies is considered noteworthy, and that’s particularly the case for Las Vegas Sands, because the operator is one of a small number of firms on the list that does all of its business outside the US.

Currently, the Las Vegas-based company operates six casinos — five in Macau and Marina Bay Sands in Singapore — though it’s exploring domestic expansion opportunities in Florida, New York, and Texas. Last year, Sands announced the sale of the Venetian Resort and Sands Expo and Convention Center on the Las Vegas Strip to Apollo Global Management and VICI Properties for $6.25 billion.

In terms of hotel operators, Hilton Worldwide Holdings (NYSE: HLT) is the highest-ranking entity on the Drucker list, placing 91st, followed by Marriott International (NASDAQ: MAR) in the 95th spot.

“To be included in the ranking that is published by the Drucker Institute on its website, as well as to be eligible for the Management Top 250, a company must also have at least two valid indicators for each of the five dimensions of performance,” added the institute.

Sands’ overall score was 58.1, putting it in a tie with coronavirus vaccine maker Moderna (NASDAQ: MRNA).

Why More Aren’t on the Drucker List

It’s easy to explain why more gaming operators aren’t on the Drucker Institute’s 2022 list of the 250 best-managed companies. Because of weakness in the group this year, some marquee gaming entities don’t meet the market capitalization requirement, and only a handful reside in the S&P 500.

The Drucker Institute expanded its rankings of 902 companies. But the gap between Sands at 180 to the next gaming company is massive. Penn Entertainment (NASDAQ: PENN) places in the 564th spot. Caesars Entertainment (NASDAQ: CZR) is next at 568.

VICI Properties (NYSE: VICI), the largest casino landlord, is ranked 574. Wynn Resorts (NASDAQ: WYNN) checks in at 736, while Boyd Gaming (NYSE: BYD) is rated 861.