Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) and United Parks & Resorts (NYSE:PRKS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Volatility and Risk
Melco Resorts & Entertainment has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Melco Resorts & Entertainment and United Parks & Resorts, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Melco Resorts & Entertainment | 2 | 2 | 5 | 1 | 2.50 |
| United Parks & Resorts | 1 | 9 | 4 | 0 | 2.21 |
Insider and Institutional Ownership
39.6% of Melco Resorts & Entertainment shares are owned by institutional investors. 57.1% of Melco Resorts & Entertainment shares are owned by company insiders. Comparatively, 1.7% of United Parks & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Melco Resorts & Entertainment and United Parks & Resorts”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Melco Resorts & Entertainment | $5.16 billion | 0.37 | $185.04 million | $0.60 | 8.35 |
| United Parks & Resorts | $1.66 billion | 1.03 | $168.35 million | $2.54 | 14.93 |
Melco Resorts & Entertainment has higher revenue and earnings than United Parks & Resorts. Melco Resorts & Entertainment is trading at a lower price-to-earnings ratio than United Parks & Resorts, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Melco Resorts & Entertainment and United Parks & Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Melco Resorts & Entertainment | 4.50% | -23.81% | 3.18% |
| United Parks & Resorts | 8.11% | -27.85% | 5.04% |
Summary
Melco Resorts & Entertainment beats United Parks & Resorts on 9 of the 15 factors compared between the two stocks.
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.
About United Parks & Resorts
United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.
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