Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) and Codere Online Luxembourg (NASDAQ:CDRO – Get Free Report) are both 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, profitability, valuation, dividends and institutional ownership.
Valuation & Earnings
This table compares Melco Resorts & Entertainment and Codere Online Luxembourg”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 | $5.16 billion | 0.47 | $185.04 million | $0.46 | 12.85 |
| Codere Online Luxembourg | $217.20 million | 1.86 | $4.23 million | N/A | N/A |
Insider and Institutional Ownership
39.6% of Melco Resorts & Entertainment shares are owned by institutional investors. Comparatively, 10.3% of Codere Online Luxembourg shares are owned by institutional investors. 57.1% of Melco Resorts & Entertainment shares are owned by insiders. Comparatively, 1.2% of Codere Online Luxembourg shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Melco Resorts & Entertainment and Codere Online Luxembourg, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Melco Resorts & Entertainment | 1 | 3 | 4 | 1 | 2.56 |
| Codere Online Luxembourg | 0 | 3 | 0 | 0 | 2.00 |
Melco Resorts & Entertainment currently has a consensus price target of $9.06, suggesting a potential upside of 53.30%. Codere Online Luxembourg has a consensus price target of $9.00, suggesting a potential upside of 1.72%. 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.
Volatility and Risk
Melco Resorts & Entertainment has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Codere Online Luxembourg has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.
Profitability
This table compares Melco Resorts & Entertainment and Codere Online Luxembourg’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Melco Resorts & Entertainment | 3.58% | -29.08% | 3.59% |
| Codere Online Luxembourg | N/A | N/A | N/A |
Summary
Melco Resorts & Entertainment beats Codere Online Luxembourg on 11 of the 13 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 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.
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