Head-To-Head Comparison: MGM Resorts International (NYSE:MGM) versus Melco International Development (OTCMKTS:MDEVF)

MGM Resorts International (NYSE:MGM) and Melco International Development (OTCMKTS:MDEVF) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	0.40%	17.23%	1.48%
Melco International Development	N/A	N/A	N/A

Earnings & Valuation

This table compares MGM Resorts International and Melco International Development”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGM Resorts International	$17.24 billion	0.59	$746.56 million	$0.16	230.96
Melco International Development	$4.64 billion	0.19	-$100.59 million	N/A	N/A

MGM Resorts International has higher revenue and earnings than Melco International Development.

Analyst Ratings

This is a summary of current ratings and recommmendations for MGM Resorts International and Melco International Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	4	9	12	0	2.32
Melco International Development	0	0	0	0	0.00

MGM Resorts International currently has a consensus price target of $45.31, suggesting a potential upside of 22.60%. Given MGM Resorts International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe MGM Resorts International is more favorable than Melco International Development.

Insider and Institutional Ownership

68.1% of MGM Resorts International shares are held by institutional investors. 3.1% of MGM Resorts International shares are held 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

MGM Resorts International has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Melco International Development has a beta of -0.22, indicating that its stock price is 122% less volatile than the S&P 500.

Summary

MGM Resorts International beats Melco International Development on 12 of the 12 factors compared between the two stocks.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.

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.