You could in practice run quite a few VMs before you'd run into trouble, especially if most of them are idle at any given point.
Or more realistically if they're usual VMs and idle the vast majority of the time, that should be faster too.
I don't even think there's a benchmark out there for such a test.
One caveat (at least with how vSphere 5.x worked) is the hypervisor has to claim all CPUs at the same time in order to do work, even if the other guest CPUs are idle. For example, if I have a 4 core VM on a 6 core host, it has to wait for 4 of the 6 to be free before the VM gets to do anything. So sometimes VMs with less CPUs can outperform one with more for the same workload. Getting proper measurements on your loads (peak/avg CPU, memory, disk IOPS etc) is critical to a good migration.
https://www.youtube.com/watch?v=jvzeZCZluJ0
What he did was he took a single 32 core AMD CPU to replace all the computers in his house, including gaming PCs. At around 00:54, he mentions that the cores on the CPU are not "weak cores".
So the answer to the question depends heavily on how cache-resident the problem you are throwing at them is. They'd do great mining bitcoin and be a total disaster as memcached hosts. More typical workloads will be somewhere in the middle.