This article was published at 02:19 hrs, 12/12/2022
Updated on December 12, 2022 at 01:35h.
Las Vegas Sands (NYSE: LVS) is the lone gaming operator on the Drucker Institute’s 2022 list of the 250 best-managed companies.
Marina Bay Sands Singapore infinity pool Las Vegas Sands, operator of this infinity pool was included on the top 250 companies to manage. (Image by Marina Bay Sands).
Microsoft (NASDAQ; MSFT) is the top-ranked firm, followed closely 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.
Claremont Graduate University’s Drucker Institute in Claremont is responsible for the annual rankings. They focus their attention on those companies that trade on the Nasdaq, or 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. Companies must also have revenues of less than $3 billion at the close of each quarter.
Las Vegas Sands features a Prestigious Inclusion
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. Sands, which owns the Venetian Resort and Sands Expo and Convention Center in Las Vegas Strip for $6.25billion, announced last year that it was selling the Venetian Resort and Sands Expo and Convention Center to Apollo Global Management and VICI Properties.
Hilton Worldwide Holdings is the most highly-ranked hotel operator, ranking 91st. Marriott International (NASDAQ; MAR), placed 95th.
“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,” The institute has been added.
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 has increased its ranking of 902 companies. The gap between Sands Gaming at 180 and the next gaming company, however is huge. Penn Entertainment (NASDAQ PENN) is in the 564th place. Next at 568 is Caesars Entertainment (NASDAQ : CZR).
VICI Properties (NYSE : VICI), which is the biggest casino landlord in America, is ranked 574. Wynn Resorts, NASDAQ: WYNN), checks in at 736. Boyd Gaming is 861.