Analyzing Bally’s (NYSE:BALY) & Melco International Development (OTCMKTS:MDEVF)

Bally’s (NYSE:BALY) and Melco International Development (OTCMKTS:MDEVF) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Valuation and Earnings

This table compares Bally’s and Melco International Development”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.66 billion	0.25	-$701.10 million	($8.15)	-1.65
Melco International Development	$4.64 billion	0.15	-$100.59 million	N/A	N/A

Melco International Development has higher revenue and earnings than Bally’s.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bally’s and Melco International Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	2	3	0	0	1.60
Melco International Development	0	0	0	0	0.00

Bally’s currently has a consensus price target of $12.75, suggesting a potential downside of 5.37%. Given Bally’s’ stronger consensus rating and higher probable upside, research analysts clearly believe Bally’s is more favorable than Melco International Development.

Volatility and Risk

Bally’s has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Melco International Development has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500.

Institutional and Insider Ownership

70.4% of Bally’s shares are owned by institutional investors. 69.3% of Bally’s shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Bally’s and Melco International Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-29.98%	-56.76%	-9.16%
Melco International Development	N/A	N/A	N/A

Summary

Bally’s beats Melco International Development on 6 of the 11 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

About Melco International Development

Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, Cyprus, and Japan. It operates in two segments: Casino and Hospitality, and Others. The company develops, owns, and operates a network of casino gaming and entertainment casino resorts. It also involved in the development and operation of integrated casino and entertainment resort, and related activities; and operation of satellite casinos. In addition, the company provides financing, management, and property investment services. Further, it operates electronic gaming machines. The company was formerly known as The Macao Electric Lighting Company, Limited and changed its name to Melco International Development Limited in 1988. Melco International Development Limited was incorporated in 1910 and is headquartered in Central, Hong Kong.