Monarch Casino & Resort (NASDAQ:MCRI) vs. Brightstar Lottery (NYSE:BRSL) Financial Comparison

Monarch Casino & Resort (NASDAQ:MCRI) and Brightstar Lottery (NYSE:BRSL) 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 dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Profitability

This table compares Monarch Casino & Resort and Brightstar Lottery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monarch Casino & Resort	20.35%	20.60%	15.79%
Brightstar Lottery	6.26%	6.96%	1.49%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Monarch Casino & Resort and Brightstar Lottery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monarch Casino & Resort	0	4	2	1	2.57
Brightstar Lottery	1	4	4	0	2.33

Monarch Casino & Resort currently has a consensus price target of $123.40, indicating a potential upside of 10.24%. Brightstar Lottery has a consensus price target of $14.77, indicating a potential upside of 43.85%. Given Brightstar Lottery’s higher possible upside, analysts clearly believe Brightstar Lottery is more favorable than Monarch Casino & Resort.

Valuation and Earnings

This table compares Monarch Casino & Resort and Brightstar Lottery”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monarch Casino & Resort	$545.12 million	3.62	$101.39 million	$6.31	17.74
Brightstar Lottery	$2.45 billion	0.78	$147.00 million	$0.82	12.52

Brightstar Lottery has higher revenue and earnings than Monarch Casino & Resort. Brightstar Lottery is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.

Dividends

Monarch Casino & Resort pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Brightstar Lottery pays an annual dividend of $0.92 per share and has a dividend yield of 9.0%. Monarch Casino & Resort pays out 19.0% of its earnings in the form of a dividend. Brightstar Lottery pays out 112.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Monarch Casino & Resort has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Brightstar Lottery has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

62.4% of Monarch Casino & Resort shares are held by institutional investors. Comparatively, 44.3% of Brightstar Lottery shares are held by institutional investors. 26.3% of Monarch Casino & Resort shares are held by company insiders. Comparatively, 1.2% of Brightstar Lottery 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.

Summary

Monarch Casino & Resort beats Brightstar Lottery on 12 of the 17 factors compared between the two stocks.

About Monarch Casino & Resort

Monarch Casino & Resort, Inc. operates destination casino resorts in Nevada and Colorado. Its properties are Atlantis Casino Resort Spa in Reno and Monarch Casino Resort Spa in Black Hawk, offering gaming, lodging, dining and other resort amenities. The company’s resorts include casino games, restaurants, bars, hotel accommodations, spas and entertainment. Atlantis serves visitors to the Reno-Tahoe area, while Monarch’s Black Hawk property draws guests from the Denver region and elsewhere in Colorado.

About Brightstar Lottery

Brightstar Lottery provides technology and services to government-sponsored and authorized lotteries. Its offerings include lottery systems and retail terminals, draw-based and instant games, digital lottery platforms, and operational and marketing support. The company serves lottery customers in North America and international markets, supporting sales through retail locations and online channels. Its systems and services help lotteries manage game operations, transactions, and player engagement.