Sharplink Gaming (NASDAQ:SBET – 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 compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Valuation and Earnings
This table compares Sharplink Gaming and Melco Resorts & Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sharplink Gaming | $28.06 million | 44.28 | -$734.59 million | ($0.60) | -10.23 |
| Melco Resorts & Entertainment | $5.16 billion | 0.41 | $185.04 million | $0.58 | 9.45 |
Insider & Institutional Ownership
13.8% of Sharplink Gaming shares are owned by institutional investors. Comparatively, 39.6% of Melco Resorts & Entertainment shares are owned by institutional investors. 3.6% of Sharplink Gaming shares are owned by company insiders. Comparatively, 57.1% of Melco Resorts & Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for Sharplink Gaming and Melco Resorts & Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sharplink Gaming | 1 | 1 | 9 | 0 | 2.73 |
| Melco Resorts & Entertainment | 2 | 2 | 5 | 1 | 2.50 |
Sharplink Gaming presently has a consensus target price of $20.23, indicating a potential upside of 229.53%. Melco Resorts & Entertainment has a consensus target price of $7.77, indicating a potential upside of 41.73%. Given Sharplink Gaming’s stronger consensus rating and higher possible upside, analysts clearly believe Sharplink Gaming is more favorable than Melco Resorts & Entertainment.
Profitability
This table compares Sharplink Gaming and Melco Resorts & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sharplink Gaming | -3,604.61% | -38.53% | -38.41% |
| Melco Resorts & Entertainment | 4.33% | -32.60% | 4.03% |
Volatility & Risk
Sharplink Gaming has a beta of 10.45, meaning that its stock price is 945% more volatile than the S&P 500. Comparatively, Melco Resorts & Entertainment has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Summary
Melco Resorts & Entertainment beats Sharplink Gaming on 10 of the 15 factors compared between the two stocks.
About Sharplink Gaming
SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.
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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