Comparing Melco Resorts & Entertainment (MLCO) and Studio City International (MSC)

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Melco Resorts & Entertainment (NASDAQ:MLCO) and Studio City International (NYSE:MSC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

36.9% of Melco Resorts & Entertainment shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Melco Resorts & Entertainment and Studio City International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Melco Resorts & Entertainment 5.98% 11.89% 4.40%
Studio City International N/A N/A N/A

Dividends

Melco Resorts & Entertainment pays an annual dividend of $0.57 per share and has a dividend yield of 2.6%. Studio City International does not pay a dividend. Melco Resorts & Entertainment pays out 62.0% of its earnings in the form of a dividend. Melco Resorts & Entertainment has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Melco Resorts & Entertainment and Studio City International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Melco Resorts & Entertainment 1 1 9 0 2.73
Studio City International 1 0 0 0 1.00

Melco Resorts & Entertainment currently has a consensus target price of $28.44, suggesting a potential upside of 29.05%. Studio City International has a consensus target price of $20.00, suggesting a potential upside of 12.42%. Given Melco Resorts & Entertainment’s stronger consensus rating and higher probable upside, research analysts plainly believe Melco Resorts & Entertainment is more favorable than Studio City International.

Valuation and Earnings

This table compares Melco Resorts & Entertainment and Studio City International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Melco Resorts & Entertainment $5.28 billion 2.06 $347.00 million $0.92 23.96
Studio City International $539.81 million 3.05 -$76.43 million N/A N/A

Melco Resorts & Entertainment has higher revenue and earnings than Studio City International.

Summary

Melco Resorts & Entertainment beats Studio City International on 11 of the 13 factors compared between the two stocks.

Melco Resorts & Entertainment Company Profile

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.

Studio City International Company Profile

Studio City International Holdings Limited operates a gaming, retail, and entertainment resort in Cotai, Macau. The company also operates Studio City Casino with 250 mass market gaming tables; approximately 970 gaming machines; and 45 VIP rolling chip tables. In addition, its resort provides various non-gaming facilities, including approximately 1,600 hotel rooms; various food and beverage establishments; retail space; figure-8 Ferris wheel; a Warner Bros.-themed family entertainment center; a 4-D Batman flight simulator; a night club; and a 5,000-seat live performance arena. 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 Melco Resorts & Entertainment Limited.

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