Monarch Casino & Resort (NASDAQ:MCRI) and United Parks & Resorts (NYSE:PRKS) Critical Contrast

United Parks & Resorts (NYSE:PRKS – Get Free Report) and Monarch Casino & Resort (NASDAQ:MCRI – 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, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

62.4% of Monarch Casino & Resort shares are owned by institutional investors. 1.7% of United Parks & Resorts shares are owned by insiders. Comparatively, 26.3% of Monarch Casino & Resort shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for United Parks & Resorts and Monarch Casino & Resort, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Parks & Resorts 1 9 4 0 2.21
Monarch Casino & Resort 0 4 2 1 2.57

United Parks & Resorts currently has a consensus price target of $46.90, indicating a potential upside of 46.33%. Monarch Casino & Resort has a consensus price target of $124.40, indicating a potential upside of 7.14%. Given United Parks & Resorts’ higher possible upside, research analysts clearly believe United Parks & Resorts is more favorable than Monarch Casino & Resort.

Profitability

This table compares United Parks & Resorts and Monarch Casino & Resort’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Parks & Resorts 8.11% -27.85% 5.04%
Monarch Casino & Resort 20.40% 20.63% 15.79%

Valuation & Earnings

This table compares United Parks & Resorts and Monarch Casino & Resort”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Parks & Resorts $1.66 billion 0.87 $168.35 million $2.54 12.62
Monarch Casino & Resort $545.12 million 3.82 $101.39 million $6.24 18.61

United Parks & Resorts has higher revenue and earnings than Monarch Casino & Resort. United Parks & Resorts is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

United Parks & Resorts has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Monarch Casino & Resort has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Summary

Monarch Casino & Resort beats United Parks & Resorts on 11 of the 15 factors compared between the two stocks.

About United Parks & Resorts

(Get Free Report)

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

About Monarch Casino & Resort

(Get Free Report)

Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.

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