Melco International Development (OTCMKTS:MDEVF) versus Golden Entertainment (NASDAQ:GDEN) Critical Comparison

Golden Entertainment (NASDAQ:GDENGet Free Report) and Melco International Development (OTCMKTS:MDEVFGet Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Golden Entertainment and Melco International Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golden Entertainment 2.35% 3.23% 1.43%
Melco International Development N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Golden Entertainment and Melco International Development, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golden Entertainment 1 4 3 0 2.25
Melco International Development 0 0 0 0 0.00

Golden Entertainment presently has a consensus target price of $31.60, suggesting a potential upside of 10.43%. Given Golden Entertainment’s stronger consensus rating and higher possible upside, research analysts plainly believe Golden Entertainment is more favorable than Melco International Development.

Valuation and Earnings

This table compares Golden Entertainment and Melco International Development”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golden Entertainment $649.90 million 1.15 $50.73 million $0.54 52.99
Melco International Development $4.64 billion 0.19 -$100.59 million N/A N/A

Golden Entertainment has higher earnings, but lower revenue than Melco International Development.

Institutional & Insider Ownership

70.7% of Golden Entertainment shares are owned by institutional investors. 30.5% of Golden Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Golden Entertainment has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Melco International Development has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Summary

Golden Entertainment beats Melco International Development on 11 of the 12 factors compared between the two stocks.

About Golden Entertainment

(Get Free Report)

Golden Entertainment, Inc. owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations. The company was incorporated in 1998 and is headquartered in Las Vegas, Nevada.

About Melco International Development

(Get Free Report)

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.

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