Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) and Canterbury Park (NASDAQ:CPHC – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Institutional and Insider Ownership
39.6% of Melco Resorts & Entertainment shares are owned by institutional investors. Comparatively, 76.4% of Canterbury Park shares are owned by institutional investors. 57.1% of Melco Resorts & Entertainment shares are owned by company insiders. Comparatively, 23.7% of Canterbury Park shares are owned by company 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 and Volatility
Melco Resorts & Entertainment has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Canterbury Park has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Melco Resorts & Entertainment | 1 | 3 | 5 | 1 | 2.60 |
| Canterbury Park | 1 | 0 | 0 | 0 | 1.00 |
Melco Resorts & Entertainment presently has a consensus target price of $9.06, indicating a potential upside of 68.72%. Given Melco Resorts & Entertainment’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Melco Resorts & Entertainment is more favorable than Canterbury Park.
Profitability
This table compares Melco Resorts & Entertainment and Canterbury Park’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Melco Resorts & Entertainment | 4.33% | -32.60% | 4.03% |
| Canterbury Park | -0.89% | -0.63% | -0.47% |
Valuation and Earnings
This table compares Melco Resorts & Entertainment and Canterbury Park”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Melco Resorts & Entertainment | $5.16 billion | 0.42 | $185.04 million | $0.58 | 9.26 |
| Canterbury Park | $59.57 million | 1.37 | -$530,000.00 | ($0.10) | -158.20 |
Melco Resorts & Entertainment has higher revenue and earnings than Canterbury Park. Canterbury Park 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 Canterbury Park on 12 of the 15 factors compared between the two stocks.
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.
About Canterbury Park
Canterbury Park Holding Corp. engages in hosting and managing pari mutuel wagering activities. It operates through the following business segments: Horse Racing, Card Casino, Food & Beverage and Development. The Horse Racing segment includes simulcast and live horse racing operations. The Card Casino segment holds unbanked card games, poker and table games. The Food and Beverage segment consists of concession stands, restaurant and buffet, bars, and other food venues. The Development segment owns land for racetrack operations. Canterbury Park Holding was founded by Curtis A. Samson, Randall D. Sampson, and Dale H. Schenian on March 24, 1994 and is headquartered in Shakopee, MN.
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