Rush Street Interactive (NYSE:RSI – Get Free Report) and Melco Resorts & Entertainment (NASDAQ:MLCO – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.
Risk and Volatility
Rush Street Interactive has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Melco Resorts & Entertainment has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Rush Street Interactive and Melco Resorts & Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rush Street Interactive | 0 | 3 | 9 | 1 | 2.85 |
| Melco Resorts & Entertainment | 1 | 3 | 4 | 1 | 2.56 |
Profitability
This table compares Rush Street Interactive and Melco Resorts & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rush Street Interactive | 2.98% | 17.21% | 8.00% |
| Melco Resorts & Entertainment | 4.33% | -32.60% | 4.03% |
Valuation & Earnings
This table compares Rush Street Interactive 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 | |
| Rush Street Interactive | $1.13 billion | 5.37 | $33.31 million | $0.31 | 84.47 |
| Melco Resorts & Entertainment | $5.16 billion | 0.45 | $185.04 million | $0.58 | 10.26 |
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.
Insider & Institutional Ownership
24.8% of Rush Street Interactive shares are held by institutional investors. Comparatively, 39.6% of Melco Resorts & Entertainment shares are held by institutional investors. 52.9% of Rush Street Interactive shares are held by insiders. Comparatively, 57.1% of Melco Resorts & Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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.
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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