Contrasting Melco Resorts & Entertainment (NASDAQ:MLCO) & Selina Hospitality (NASDAQ:SLNA)

Melco Resorts & Entertainment (NASDAQ:MLCO) and Selina Hospitality (NASDAQ:SLNA) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Insider and Institutional Ownership

39.6% of Melco Resorts & Entertainment shares are held by institutional investors. 57.1% of Melco Resorts & Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Melco Resorts & Entertainment and Selina Hospitality’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Melco Resorts & Entertainment	$3.78 billion	0.92	-$326.92 million	($0.42)	-18.52
Selina Hospitality	$204.19 million	0.01	-$197.11 million	N/A	N/A

Selina Hospitality has lower revenue, but higher earnings than Melco Resorts & Entertainment.

Analyst Ratings

This is a summary of current ratings and price targets for Melco Resorts & Entertainment and Selina Hospitality, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Melco Resorts & Entertainment	0	0	6	0	3.00
Selina Hospitality	0	0	0	0	N/A

Melco Resorts & Entertainment presently has a consensus price target of $13.25, indicating a potential upside of 70.31%. Given Melco Resorts & Entertainment’s higher probable upside, analysts plainly believe Melco Resorts & Entertainment is more favorable than Selina Hospitality.

Profitability

This table compares Melco Resorts & Entertainment and Selina Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Melco Resorts & Entertainment	-4.34%	-7.61%	0.67%
Selina Hospitality	N/A	N/A	N/A

Risk & Volatility

Melco Resorts & Entertainment has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Selina Hospitality has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Summary

Melco Resorts & Entertainment beats Selina Hospitality on 8 of the 11 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 Selina Hospitality

Selina Hospitality PLC operates as a hospitality company in Australia, Asia, the United States of America, Mexico, Central America, South America, Europe, Israel, and Africa. Its portfolio includes lifestyle and experiential Millennial- and Gen Z-focused hotels with 118 destinations in 24 countries across 6 continents. The company was founded in 2014 and is headquartered in London, the United Kingdom.