Critical Contrast: Roblox (NYSE:RBLX) & Monarch Casino & Resort (NASDAQ:MCRI)

Monarch Casino & Resort (NASDAQ:MCRIGet Free Report) and Roblox (NYSE:RBLXGet Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Institutional and Insider Ownership

62.4% of Monarch Casino & Resort shares are owned by institutional investors. Comparatively, 94.5% of Roblox shares are owned by institutional investors. 25.5% of Monarch Casino & Resort shares are owned by insiders. Comparatively, 12.9% of Roblox shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Monarch Casino & Resort and Roblox”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monarch Casino & Resort $539.64 million 3.27 $72.77 million $5.54 17.44
Roblox $4.46 billion 13.09 -$935.38 million ($1.43) -62.40

Monarch Casino & Resort has higher earnings, but lower revenue than Roblox. Roblox is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Monarch Casino & Resort and Roblox, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monarch Casino & Resort 0 5 2 0 2.29
Roblox 3 8 20 0 2.55

Monarch Casino & Resort currently has a consensus price target of $94.60, suggesting a potential downside of 2.08%. Roblox has a consensus price target of $136.41, suggesting a potential upside of 52.87%. Given Roblox’s stronger consensus rating and higher possible upside, analysts clearly believe Roblox is more favorable than Monarch Casino & Resort.

Profitability

This table compares Monarch Casino & Resort and Roblox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monarch Casino & Resort 19.26% 19.33% 14.67%
Roblox -21.70% -314.20% -12.47%

Volatility and Risk

Monarch Casino & Resort has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Roblox has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

About Monarch Casino & Resort

(Get Free Report)

Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.

About Roblox

(Get Free Report)

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.

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