Melco Crown Entertainment Limited (NASDAQ: MLCO) and Golden Entertainment (NASDAQ:GDEN) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Dividends

Melco Crown Entertainment Limited pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Golden Entertainment does not pay a dividend. Melco Crown Entertainment Limited pays out 57.7% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Melco Crown Entertainment Limited 5.11% 9.20% 3.59%
Golden Entertainment 4.29% 6.26% 3.17%

Valuation & Earnings

This table compares Melco Crown Entertainment Limited and Golden Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Melco Crown Entertainment Limited $4.92 billion 2.07 $1.11 billion $0.52 40.10
Golden Entertainment $426.75 million 1.18 $44.77 million $0.80 28.09

Melco Crown Entertainment Limited has higher revenue and earnings than Golden Entertainment. Golden Entertainment is trading at a lower price-to-earnings ratio than Melco Crown Entertainment Limited, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Melco Crown Entertainment Limited and Golden Entertainment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Melco Crown Entertainment Limited 1 5 9 0 2.53
Golden Entertainment 0 1 0 0 2.00

Melco Crown Entertainment Limited presently has a consensus price target of $21.42, indicating a potential upside of 2.73%. Given Melco Crown Entertainment Limited’s stronger consensus rating and higher possible upside, analysts plainly believe Melco Crown Entertainment Limited is more favorable than Golden Entertainment.

Risk and Volatility

Melco Crown Entertainment Limited has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Golden Entertainment has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.

Insider and Institutional Ownership

40.3% of Melco Crown Entertainment Limited shares are held by institutional investors. Comparatively, 26.7% of Golden Entertainment shares are held by institutional investors. 52.0% of Golden Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Melco Crown Entertainment Limited beats Golden Entertainment on 12 of the 16 factors compared between the two stocks.

Melco Crown Entertainment Limited Company Profile

Melco Resorts & Entertainment Limited, formerly Melco Crown Entertainment Limited, is a holding company. The Company, through its subsidiaries, develops, owns and operates casino gaming and entertainment casino resort facilities in Asia. It is principally engaged in the gaming and hospitality business in Asia and its principal operating and developmental activities occur in over two geographic areas, which include Macau and the Philippines. Its segments include City of Dreams, Altira Macau, Studio City, Mocha Clubs, City of Dreams Manila, and Corporate and Others. It has over three casino based operations in Macau, namely, City of Dreams, Altira Macau and Studio City, and non-casino based operations in Macau at its Mocha Clubs. It also has a casino based operation in the Philippines, City of Dreams Manila. It is developing the fifth hotel tower at City of Dreams in Cotai, Macau. Its other operations also include Taipa Square Casino, Macau operating within Hotel Taipa Square.

Golden Entertainment Company Profile

Golden Entertainment, Inc. is a group of gaming companies. The Company focuses on distributed gaming, including tavern gaming, and casino and resort operations. It operates through two segments: Distributed Gaming and Casinos. Its Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. As of December 31, 2016, its distributed gaming operations consisted of approximately 10,400 gaming devices in approximately 960 locations. Its Casinos segment consists of the Rocky Gap Casino Resort in Flintstone, Maryland and three casinos in Pahrump, Nevada: Pahrump Nugget Hotel Casino, Gold Town Casino and Lakeside Casino & RV Park.

Receive News & Stock Ratings for Melco Crown Entertainment Limited Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Melco Crown Entertainment Limited and related stocks with our FREE daily email newsletter.