Contrasting Codere Online Luxembourg (NASDAQ:CDRO) and Melco Resorts & Entertainment (NASDAQ:MLCO)

Codere Online Luxembourg (NASDAQ:CDRO) and Melco Resorts & Entertainment (NASDAQ:MLCO) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Codere Online Luxembourg and Melco Resorts & Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Codere Online Luxembourg	0	3	0	0	2.00
Melco Resorts & Entertainment	1	3	5	1	2.60

Codere Online Luxembourg presently has a consensus target price of $9.00, indicating a potential downside of 0.22%. Melco Resorts & Entertainment has a consensus target price of $9.06, indicating a potential upside of 51.00%. Given Melco Resorts & Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Melco Resorts & Entertainment is more favorable than Codere Online Luxembourg.

Insider and Institutional Ownership

10.3% of Codere Online Luxembourg shares are owned by institutional investors. Comparatively, 39.6% of Melco Resorts & Entertainment shares are owned by institutional investors. 1.2% of Codere Online Luxembourg shares are owned by insiders. Comparatively, 57.1% of Melco Resorts & Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Codere Online Luxembourg and Melco Resorts & Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Codere Online Luxembourg	$217.20 million	1.90	$4.23 million	N/A	N/A
Melco Resorts & Entertainment	$5.16 billion	0.47	$185.04 million	$0.46	13.04

Melco Resorts & Entertainment has higher revenue and earnings than Codere Online Luxembourg.

Profitability

This table compares Codere Online Luxembourg and Melco Resorts & Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Codere Online Luxembourg	N/A	N/A	N/A
Melco Resorts & Entertainment	3.58%	-29.08%	3.59%

Volatility & Risk

Codere Online Luxembourg has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Melco Resorts & Entertainment has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Summary

Melco Resorts & Entertainment beats Codere Online Luxembourg on 11 of the 13 factors compared between the two stocks.

About Codere Online Luxembourg

Codere Online Luxembourg, S.A. operates as an online casino gaming and sports betting company. It also offers online casino wagering products and services, as well as online gambling and other online services. The company offers its products under the Codere and Greenplay brand names. It primarily operates in Spain, Italy, Mexico, Colombia, the United Kingdom, Germany, South Africa, Austria, Malta, Panama, and Argentina. The company is based in Luxembourg, Luxembourg.

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.