Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) and Airbnb (NASDAQ:ABNB – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Institutional and Insider Ownership
39.6% of Melco Resorts & Entertainment shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 57.1% of Melco Resorts & Entertainment shares are held by company insiders. Comparatively, 27.2% of Airbnb shares are held 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.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Melco Resorts & Entertainment and Airbnb, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Melco Resorts & Entertainment | 2 | 2 | 5 | 1 | 2.50 |
| Airbnb | 2 | 11 | 24 | 2 | 2.67 |
Profitability
This table compares Melco Resorts & Entertainment and Airbnb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Melco Resorts & Entertainment | 4.50% | -23.81% | 3.18% |
| Airbnb | 20.45% | 33.38% | 10.67% |
Risk & Volatility
Melco Resorts & Entertainment has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Earnings and Valuation
This table compares Melco Resorts & Entertainment and Airbnb”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 | $5.22 billion | 0.38 | $185.04 million | $0.60 | 8.62 |
| Airbnb | $13.16 billion | 8.39 | $2.51 billion | $4.40 | 41.91 |
Airbnb has higher revenue and earnings than Melco Resorts & Entertainment. Melco Resorts & Entertainment is trading at a lower price-to-earnings ratio than Airbnb, indicating that it is currently the more affordable of the two stocks.
Summary
Airbnb beats Melco Resorts & Entertainment on 13 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 Airbnb
Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.
Receive News & Ratings for Melco Resorts & Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Melco Resorts & Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
