Financial Survey: Melco PBL (MLCO) vs. The Competition

Melco PBL (NASDAQ: MLCO) is one of 30 public companies in the “Hotels & motels” industry, but how does it contrast to its competitors? We will compare Melco PBL to related companies based on the strength of its profitability, analyst recommendations, dividends, institutional ownership, risk, valuation and earnings.

Insider & Institutional Ownership

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41.0% of Melco PBL shares are owned by institutional investors. Comparatively, 70.5% of shares of all “Hotels & motels” companies are owned by institutional investors. 17.6% of shares of all “Hotels & motels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Melco PBL and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Melco PBL 0 1 12 0 2.92
Melco PBL Competitors 304 1432 2169 73 2.51

Melco PBL currently has a consensus target price of $27.53, suggesting a potential downside of 5.00%. As a group, “Hotels & motels” companies have a potential upside of 4.12%. Given Melco PBL’s competitors higher probable upside, analysts clearly believe Melco PBL has less favorable growth aspects than its competitors.

Dividends

Melco PBL pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Melco PBL pays out 43.5% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.7% and pay out 46.2% of their earnings in the form of a dividend.

Volatility & Risk

Melco PBL has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Melco PBL’s competitors have a beta of 1.16, meaning that their average stock price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares Melco PBL and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Melco PBL $5.28 billion $347.00 million 31.50
Melco PBL Competitors $3.57 billion $470.05 million 155.99

Melco PBL has higher revenue, but lower earnings than its competitors. Melco PBL is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Melco PBL and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Melco PBL 6.47% 13.83% 5.13%
Melco PBL Competitors 10.97% 12.75% 4.81%

Summary

Melco PBL competitors beat Melco PBL on 8 of the 15 factors compared.

Melco PBL Company Profile

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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