Reviewing Melco International Development (OTCMKTS:MDEVF) and Codere Online Luxembourg (NASDAQ:CDRO)

Codere Online Luxembourg (NASDAQ:CDRO) and Melco International Development (OTCMKTS:MDEVF) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Risk & Volatility

Codere Online Luxembourg has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Melco International Development has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Codere Online Luxembourg and Melco International Development, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Codere Online Luxembourg	0	3	0	0	2.00
Melco International Development	0	0	0	0	0.00

Codere Online Luxembourg currently has a consensus target price of $10.00, indicating a potential upside of 4.60%. Given Codere Online Luxembourg’s stronger consensus rating and higher possible upside, research analysts clearly believe Codere Online Luxembourg is more favorable than Melco International Development.

Profitability

This table compares Codere Online Luxembourg and Melco International Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Codere Online Luxembourg	N/A	N/A	N/A
Melco International Development	N/A	N/A	N/A

Institutional & Insider Ownership

10.3% of Codere Online Luxembourg shares are held by institutional investors. 1.2% of Codere Online Luxembourg shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Codere Online Luxembourg and Melco International Development”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Codere Online Luxembourg	$238.00 million	1.83	$1.46 million	N/A	N/A
Melco International Development	$4.64 billion	0.15	-$100.59 million	N/A	N/A

Codere Online Luxembourg has higher earnings, but lower revenue than Melco International Development.

Summary

Codere Online Luxembourg beats Melco International Development on 7 of the 8 factors compared between the two stocks.

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.

About Melco International Development

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.