Bally’s (NYSE:BALY – Get Free Report) and Melco International Development (OTCMKTS:MDEVF – Get Free Report) 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.
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 |
Valuation & Earnings
This table compares Bally’s and Melco International Development”s gross 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.
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.
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.
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.
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.
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