How to deconstruct your rival's corporate strategy playbook.

Like Andy Reid hiding his mouth to conceal his tactical whispers, companies benefit from keeping their game plan under wraps. It’s difficult to call a winning play when the competition is standing in the huddle with you.

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Conversely, couldn’t you thrive if you were the rival able to discern those whispers?

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PivotXY’s Competitive Benchmarking module does just that, giving you a detailed look at the decisions your competitors made and how shareholders rewarded those moves. And you get that info ethically instead of the other way. It culls these insights from SEC filings and other robust data sources to show how the path your company took differed from those of peer companies and how those decisions affected share price.

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Let’s dig into how PivotXY’s Competitive Benchmarking module can guide your strategic moves in real time to forge a better path toward optimizing shareholder value.

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Wynn Resorts: Is their game plan working against rivals?

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Say you’re the CEO of a company that considers Wynn Resorts a rival. Wynn is a gambling/hospitality enterprise — one we chose randomly — that benefits from major sporting and entertainment events like Super Bowl Sunday. Like any head coach, you would love to know what your “division rivals” are planning. And one of the most reliable methods of cracking that code is to watch the game tape. In other words, see what has worked for them in the past.

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PivotXY lets you do that in moments, with ease, by running our Competitive Benchmarking module. You’ll enter the company you want to analyze as the target of the analysis, then select the other peer companies you want to compare against. Within a few minutes, PivotXY sorts through vast amounts of data to distill precisely what you need to know about your rival’s performance versus yours.

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How did Wynn come out in our analysis? Read on.

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Having a pretty good season, but peers are outrunning them

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PivotXY’s Competitive Benchmarking module assesses in detail each company’s “Value Engine,” which comes to light when analyzing the interplay between three key data points:

• Economic Profit, a company’s earnings after deducting both operational expenses (explicit costs) and opportunity costs (implicit costs)
• Invested Capital, the combined value of equity and debt capital raised
• Sources and Uses of Cash, which details how a company obtains and invests available funds

The goal is to determine some important details of the company’s corporate strategy:

• Does it convert capital into profit effectively?
• What are the costs of its capital deployment decisions — what options is it bypassing?

The power of a company's Value Engine is always defined in relation to the company's peers. Have others capitalized on opportunities that a company failed to see? Shareholders will recognize the more powerful value engines.

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Let’s look at how Wynn’s Value Engine has performed versus 11 peer companies.

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Lagging in Economic Profit

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PivotXY found that Wynn Resorts generated an Economic Profit of 237, short of the peer average of 289, as shown in the chart below and in the summary created automatically by our Competitive Benchmarking module.

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What’s holding back their Economic Profit? Let’s dive into the strategic decisions they’re making. This is the PivotXY chart detailing Sources and Uses of Cash. First, we’ll look at Wynn’s choices on these metrics:

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They’ve got strong operational cash flow but are focused heavily on debt repayment and equity financing. How does it compare to peers?

Wynn compares favorably to the peer average in terms of operational cash flow, so let’s see how it does against the best-performing peers, or as we call them, Champions.

Top peers had stronger operational cash flows and less focus on debt reduction. These charts also show how Wynn’s playbook differed from top-performing peers, revealing a current strategy of financial discipline with respect to debt but without an accompanying focus on asset optimization.

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As PivotXY’s analysis put it, “Wynn Resorts emphasizes debt repayment (using 61% of its cash) and equity issuance (38% of its cash), focusing on financial discipline and growth via external financing, unlike Champions and Agile Transformers. It maintains strong operational cash flows while avoiding divestments, indicating a preference for asset retention and expansion over immediate optimization.”

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Our analysis added another interesting detail: “Wynn’s EBITDA index for 2023 is 1,145, significantly below the peer average of 5,901. This reflects recent volatility and a declining trend, indicating a challenging and unstable environment compared to its peers.”

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Shareholders reward a company’s Value Engine

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So, how did shareholders reward Wynn’s capital deployment strategy? Check out PivotXY's Total Shareholder Return (TSR) chart:

Shareholders recognize the stronger Value Engine, which they define in relation to a company’s peers. Wynn’s top rivals took a more balanced approach between growth and asset management.

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PivotXY spells out the results: “Wynn Resorts, Limited's TSR index declined to 68 by 2025, falling below the peer average of 76, indicating underperformance. Despite a slight recovery in 2023, the company experienced a downward trend with marked volatility.”

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And here’s where PivotXY’s Segmentation classified Wynn in this peer group:

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This is only a small part of the story, but these indicators can offer valuable insight into your rival’s current strategies and how they’re affecting value generation. PivotXY’s Competitive Benchmarking module, in a few clicks, delivered this information and much more detail, comparing a rival’s approach to yours and others. It’s a groundbreaking software solution that will bring clarity to your corporate leadership’s every strategy meeting.

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See your rival’s playbook with a free Competitive Benchmarking report

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PivotXY is a software solution designed to redefine how organizations create and sustain shareholder value. Our proprietary platform fuses decades of on-the-ground economic expertise with AI efficiency to bring scalable precision and speed to corporate leadership decision-making.

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We’re offering you a free Competitive Benchmarking report to sample the depth and relevancy of PivotXY’s insights. Or, contact our experts for a free demo.

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