Meridian (NASDAQ:MRDN – Get Free Report) and Studio City Ih (NYSE:MSC – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.
Risk and Volatility
Meridian has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Studio City Ih has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.
Valuation & Earnings
This table compares Meridian and Studio City Ih”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Meridian | $182.86 million | 0.85 | -$89.90 million | ($6.74) | -1.82 |
| Studio City Ih | $694.57 million | 0.25 | -$64.30 million | ($0.28) | -2.95 |
Studio City Ih has higher revenue and earnings than Meridian. Studio City Ih is trading at a lower price-to-earnings ratio than Meridian, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
2.7% of Meridian shares are held by institutional investors. 24.0% of Meridian shares are held by insiders. Comparatively, 54.9% of Studio City Ih shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations for Meridian and Studio City Ih, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Meridian | 1 | 0 | 0 | 0 | 1.00 |
| Studio City Ih | 1 | 0 | 0 | 0 | 1.00 |
Meridian presently has a consensus price target of $21.60, suggesting a potential upside of 76.18%. Given Meridian’s higher possible upside, equities analysts plainly believe Meridian is more favorable than Studio City Ih.
Profitability
This table compares Meridian and Studio City Ih’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Meridian | -41.41% | -117.87% | -58.87% |
| Studio City Ih | -7.79% | -9.26% | -1.89% |
Summary
Studio City Ih beats Meridian on 7 of the 12 factors compared between the two stocks.
About Meridian
Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region. The RKings & CFAC segment is involved in pay-to-enter prize competitions and trade promotions conducted in the United Kingdom and Australia. It generates the majority of its revenue from the MeridianBet Group segment.
About Studio City Ih
Studio City International Holdings Limited operates an entertainment resort in Macau. It operates Studio City Casino, comprising gaming tables, including tables for VIP rolling chip operations and gaming machines; and resort, which offers various non-gaming attractions, including figure-8 ferris wheel, night club and karaoke venue, live performance arena, and an outdoor and indoor water park, as well as hotel rooms and various food and beverage establishments, and retail space. The company was formerly known as Cyber One Agents Limited and changed its name to Studio City International Holdings Limited in January 2012. The company was founded in 2000 and is based in Central, Hong Kong. Studio City International Holdings Limited is a subsidiary of MCO Cotai Investments Limited.
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