Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) and Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Insider and Institutional Ownership
3.2% of Allied Gaming & Entertainment shares are held by institutional investors. Comparatively, 39.6% of Melco Resorts & Entertainment shares are held by institutional investors. 39.4% of Allied Gaming & Entertainment shares are held by company insiders. Comparatively, 57.1% of Melco Resorts & Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Allied Gaming & Entertainment and Melco Resorts & Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gaming & Entertainment | 0 | 0 | 0 | 0 | 0.00 |
| Melco Resorts & Entertainment | 1 | 1 | 4 | 0 | 2.50 |
Volatility & Risk
Allied Gaming & Entertainment has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Melco Resorts & Entertainment has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares Allied Gaming & Entertainment and Melco Resorts & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allied Gaming & Entertainment | -221.65% | -8.20% | -5.43% |
| Melco Resorts & Entertainment | 1.28% | -12.58% | 1.43% |
Earnings & Valuation
This table compares Allied Gaming & Entertainment and Melco Resorts & Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gaming & Entertainment | $9.08 million | 6.49 | -$16.76 million | ($0.27) | -5.74 |
| Melco Resorts & Entertainment | $4.64 billion | 0.80 | $43.54 million | $0.14 | 63.50 |
Melco Resorts & Entertainment has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than Melco Resorts & Entertainment, indicating that it is currently the more affordable of the two stocks.
Summary
Melco Resorts & Entertainment beats Allied Gaming & Entertainment on 11 of the 14 factors compared between the two stocks.
About Allied Gaming & Entertainment
Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.
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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