Published on: December 12, 2022, 01:19 am.
Last update: December 12, 2022, 01:26.
Las Vegas Sands (NYSE: LVS) is the only gambling operator on the Drucker Institute’s 2022 list of the 250 Best Managed Companies.
Microsoft (NASDAQ: MSFT ) tops the list, followed by Apple (NASDAQ: AAPL ). The top-rated firm in the consumer discretionary sector — the group that houses gaming companies — is Amazon (NASDAQ: AMZN ) at number eight. Sands ranks 180th.
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, California, and its annual rankings focus on companies that trade on the Nasdaq or the New York Stock Exchange. Other requirements for inclusion in the ranking 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. In addition, the companies had to have at least $3 billion in revenue at the end of the first quarter.
Prestige inclusion for Las Vegas Sands
Inclusion on the Drucker Institute’s Best Managed Companies list is considered noteworthy, and this is especially the case for Las Vegas Sands, as the operator is one of the few firms on the list that conducts all of its operations outside the US.
The Las Vegas-based company currently operates six casinos – five in Macau and Singapore’s Marina Bay Sands – although it is 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.
Among hotel operators, Hilton Worldwide Holdings (NYSE: HLT ) is the highest-ranking entity on Drucker’s list, ranking 91st.Stfollowed by Marriott International (NASDAQ: MAR ) in 95th place.
“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, tying it with coronavirus vaccine maker Moderna (NASDAQ: MRNA ).
Why more game companies are not on Drucker’s list
It’s easy to explain why more gambling operators aren’t on the Drucker Institute’s 2022 list of the 250 Best Managed Companies. Because of the group’s weakness this year, some gaming entities do not meet the market capitalization requirement and only a handful are in the S&P 500.
The Drucker Institute expanded its ranking of 902 companies, but the gap between Sands at 180 and the next game is massive. Penn Entertainment (NASDAQ: PENN ) is ranked 564. Caesars Entertainment (NASDAQ: CZR ) is next at 568.
VICI Properties (NYSE: VICI ), the largest casino owner, ranks 574. Wynn Resorts (NASDAQ: WYNN ) checks in at 736, while Boyd Gaming (NYSE: BYD ) ranks 861.