Critical Comparison: Monarch Casino & Resort (NASDAQ:MCRI) and United Parks & Resorts (NYSE:PRKS)

United Parks & Resorts (NYSE:PRKS) and Monarch Casino & Resort (NASDAQ:MCRI) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for United Parks & Resorts and Monarch Casino & Resort, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parks & Resorts	1	9	4	0	2.21
Monarch Casino & Resort	0	4	2	1	2.57

United Parks & Resorts currently has a consensus target price of $46.90, indicating a potential upside of 46.33%. Monarch Casino & Resort has a consensus target price of $124.40, indicating a potential upside of 7.14%. Given United Parks & Resorts’ higher probable upside, equities research analysts plainly believe United Parks & Resorts is more favorable than Monarch Casino & Resort.

Insider and Institutional Ownership

62.4% of Monarch Casino & Resort shares are owned by institutional investors. 1.7% of United Parks & Resorts shares are owned by insiders. Comparatively, 26.3% of Monarch Casino & Resort shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

United Parks & Resorts has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Monarch Casino & Resort has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares United Parks & Resorts and Monarch Casino & Resort’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Parks & Resorts	8.11%	-27.85%	5.04%
Monarch Casino & Resort	20.40%	20.63%	15.79%

Valuation and Earnings

This table compares United Parks & Resorts and Monarch Casino & Resort”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parks & Resorts	$1.66 billion	0.87	$168.35 million	$2.54	12.62
Monarch Casino & Resort	$545.12 million	3.82	$101.39 million	$6.24	18.61

United Parks & Resorts has higher revenue and earnings than Monarch Casino & Resort. United Parks & Resorts 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.

Summary

Monarch Casino & Resort beats United Parks & Resorts on 11 of the 15 factors compared between the two stocks.

About United Parks & Resorts

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

About Monarch Casino & Resort

Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.