Analyzing Monarch Casino & Resort (NASDAQ:MCRI) & Studio City International (MSC)

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Studio City International (NYSE:MSC) and Monarch Casino & Resort (NASDAQ:MCRI) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Studio City International and Monarch Casino & Resort, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Studio City International 1 0 0 0 1.00
Monarch Casino & Resort 0 2 0 0 2.00

Studio City International presently has a consensus target price of $20.00, suggesting a potential upside of 16.69%. Monarch Casino & Resort has a consensus target price of $48.50, suggesting a potential upside of 10.96%. Given Studio City International’s higher possible upside, equities research analysts clearly believe Studio City International is more favorable than Monarch Casino & Resort.

Insider and Institutional Ownership

0.0% of Studio City International shares are owned by institutional investors. Comparatively, 62.0% of Monarch Casino & Resort shares are owned by institutional investors. 26.2% of Monarch Casino & Resort shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Studio City International and Monarch Casino & Resort’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Studio City International $571.21 million 2.77 -$76.43 million ($0.24) -71.42
Monarch Casino & Resort $240.32 million 3.25 $25.53 million $1.83 23.89

Monarch Casino & Resort has lower revenue, but higher earnings than Studio City International. Studio City International 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.

Profitability

This table compares Studio City International and Monarch Casino & Resort’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Studio City International N/A N/A N/A
Monarch Casino & Resort 14.19% 11.92% 8.54%

Summary

Monarch Casino & Resort beats Studio City International on 10 of the 12 factors compared between the two stocks.

Studio City International Company Profile

Studio City International Holdings Limited operates a gaming, retail, and entertainment resort in Cotai, Macau. The company also operates Studio City Casino with 250 mass market gaming tables; approximately 970 gaming machines; and 45 VIP rolling chip tables. In addition, its resort provides various non-gaming facilities, including approximately 1,600 hotel rooms; various food and beverage establishments; retail space; figure-8 Ferris wheel; a Warner Bros.-themed family entertainment center; a 4-D Batman flight simulator; a night club; and a 5,000-seat live performance arena. The company was formerly known as Cyber One Agents Limited and changed its name to Studio City International Holdings Limited in January 2012. The company was founded in 2000 and is based in Central, Hong Kong. Studio City International Holdings Limited is a subsidiary of Melco Resorts & Entertainment Limited.

Monarch Casino & Resort Company Profile

Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada. It also owns and operates the Monarch Casino Black Hawk in Black Hawk, Colorado. As of March 5, 2018, the company's Atlantis Casino Resort Spa featured approximately 61,000 square feet of casino space; 824 guest rooms; 8 food outlets; 2 espresso and pastry bars; a 30,000 square-foot health spa and salon with an enclosed pool; 2 retail outlets offering clothing and gift shop merchandise; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention, and meeting room space. Its Atlantis Casino Resort Spa also featured approximately 1,450 slot and video poker machines; approximately 38 table games, including blackjack, craps, roulette, and others; a race and sports book; a 24-hour live keno lounge; and a poker room. In addition, the company's Monarch Casino Black Hawk featured approximately 30,000 square feet of casino space, approximately 740 slot machines, 14 table games, a 250-seat buffet-style restaurant, a snack bar, and a nine-story parking structure with approximately 1,350 spaces, as well as valet parking with a total parking capacity to 1,500 spaces. Monarch Casino & Resort, Inc. was founded in 1972 and is based in Reno, Nevada.

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