Melco International Development (OTCMKTS:MDEVF – Get Free Report) and Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Profitability
This table compares Melco International Development and Melco Resorts & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Melco International Development | N/A | N/A | N/A |
| Melco Resorts & Entertainment | 3.58% | -29.08% | 3.59% |
Earnings & Valuation
This table compares Melco International Development and Melco Resorts & Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Melco International Development | $4.64 billion | 0.18 | -$100.59 million | N/A | N/A |
| Melco Resorts & Entertainment | $5.16 billion | 0.42 | $185.04 million | $0.46 | 12.13 |
Melco Resorts & Entertainment has higher revenue and earnings than Melco International Development.
Insider and Institutional Ownership
39.6% of Melco Resorts & Entertainment shares are held by institutional investors. 57.1% of Melco Resorts & Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Melco International Development and Melco Resorts & Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Melco International Development | 0 | 0 | 0 | 0 | 0.00 |
| Melco Resorts & Entertainment | 1 | 3 | 4 | 1 | 2.56 |
Melco Resorts & Entertainment has a consensus target price of $9.06, indicating a potential upside of 62.37%. Given Melco Resorts & Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Melco Resorts & Entertainment is more favorable than Melco International Development.
Volatility & Risk
Melco International Development has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500. Comparatively, Melco Resorts & Entertainment has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Summary
Melco Resorts & Entertainment beats Melco International Development on 12 of the 13 factors compared between the two stocks.
About Melco International Development
Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, Cyprus, and Japan. It operates in two segments: Casino and Hospitality, and Others. The company develops, owns, and operates a network of casino gaming and entertainment casino resorts. It also involved in the development and operation of integrated casino and entertainment resort, and related activities; and operation of satellite casinos. In addition, the company provides financing, management, and property investment services. Further, it operates electronic gaming machines. The company was formerly known as The Macao Electric Lighting Company, Limited and changed its name to Melco International Development Limited in 1988. Melco International Development Limited was incorporated in 1910 and is headquartered in Central, Hong Kong.
About Melco Resorts & Entertainment
Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 112 gaming tables and 56 gaming machines; 230 hotel rooms; various fine dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically-themed integrated entertainment, retail, and gaming resort that comprises 280 gaming tables and 980 gaming machines in Cotai, Macau. Further, the company owns and operates 7 Mocha Clubs with 1,034 gaming machines, as well as Taipa Square casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, a casino, hotel, retail, and entertainment integrated resort in the Entertainment City complex in Manila. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. Melco Resorts & Entertainment Limited was incorporated in 2004 and is based in Central, Hong Kong. As of February 16, 2017, Melco Resorts & Entertainment Limited operates as a subsidiary of Melco Leisure and Entertainment Group Limited.
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