Wynn Resorts (NASDAQ:WYNN – Get Free Report) and Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Analyst Ratings
This is a summary of current ratings and recommmendations for Wynn Resorts and Melco Resorts & Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wynn Resorts | 0 | 2 | 17 | 1 | 2.95 |
| Melco Resorts & Entertainment | 2 | 3 | 4 | 0 | 2.22 |
Wynn Resorts presently has a consensus target price of $124.88, suggesting a potential upside of 58.51%. Melco Resorts & Entertainment has a consensus target price of $6.83, suggesting a potential upside of 66.26%. Given Melco Resorts & Entertainment’s higher probable upside, analysts plainly believe Melco Resorts & Entertainment is more favorable than Wynn Resorts.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Wynn Resorts | 6.05% | -46.52% | 3.60% |
| Melco Resorts & Entertainment | 4.50% | -23.81% | 3.18% |
Earnings and Valuation
This table compares Wynn Resorts and Melco Resorts & Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wynn Resorts | $7.14 billion | 1.14 | $327.33 million | $4.03 | 19.55 |
| Melco Resorts & Entertainment | $5.16 billion | 0.30 | $185.04 million | $0.60 | 6.84 |
Wynn Resorts has higher revenue and earnings than Melco Resorts & Entertainment. Melco Resorts & Entertainment is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
88.6% of Wynn Resorts shares are held by institutional investors. Comparatively, 39.6% of Melco Resorts & Entertainment shares are held by institutional investors. 0.9% of Wynn Resorts shares are held by insiders. Comparatively, 57.1% of Melco Resorts & Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Wynn Resorts has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Melco Resorts & Entertainment has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Summary
Wynn Resorts beats Melco Resorts & Entertainment on 12 of the 15 factors compared between the two stocks.
About Wynn Resorts
Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.
About Melco Resorts & Entertainment
Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 112 gaming tables and 56 gaming machines; 230 hotel rooms; various fine dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically-themed integrated entertainment, retail, and gaming resort that comprises 280 gaming tables and 980 gaming machines in Cotai, Macau. Further, the company owns and operates 7 Mocha Clubs with 1,034 gaming machines, as well as Taipa Square casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, a casino, hotel, retail, and entertainment integrated resort in the Entertainment City complex in Manila. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. Melco Resorts & Entertainment Limited was incorporated in 2004 and is based in Central, Hong Kong. As of February 16, 2017, Melco Resorts & Entertainment Limited operates as a subsidiary of Melco Leisure and Entertainment Group Limited.
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