Melco Resorts & Entertainment (NASDAQ:MLCO) vs. Rush Street Interactive (NYSE:RSI) Financial Comparison

Melco Resorts & Entertainment (NASDAQ:MLCO) and Rush Street Interactive (NYSE:RSI) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Earnings and Valuation

This table compares Melco Resorts & Entertainment and Rush Street Interactive”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Melco Resorts & Entertainment	$5.16 billion	0.45	$185.04 million	$0.58	10.25
Rush Street Interactive	$1.13 billion	5.32	$33.31 million	$0.31	83.64

Melco Resorts & Entertainment has higher revenue and earnings than Rush Street Interactive. Melco Resorts & Entertainment is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Melco Resorts & Entertainment has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Profitability

This table compares Melco Resorts & Entertainment and Rush Street Interactive’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%
Rush Street Interactive	2.98%	17.21%	8.00%

Analyst Ratings

This is a summary of recent recommendations for Melco Resorts & Entertainment and Rush Street Interactive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Melco Resorts & Entertainment	1	2	5	1	2.67
Rush Street Interactive	0	3	9	1	2.85

Melco Resorts & Entertainment currently has a consensus price target of $9.68, suggesting a potential upside of 62.74%. Rush Street Interactive has a consensus price target of $29.25, suggesting a potential upside of 12.81%. Given Melco Resorts & Entertainment’s higher probable upside, analysts clearly believe Melco Resorts & Entertainment is more favorable than Rush Street Interactive.

Insider & Institutional Ownership

39.6% of Melco Resorts & Entertainment shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 57.1% of Melco Resorts & Entertainment shares are owned by company insiders. Comparatively, 52.9% of Rush Street Interactive shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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 Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.