Comparing Studio City International (MSC) & Eldorado Resorts (ERI)

Eldorado Resorts (NASDAQ:ERI) and Studio City International (NYSE:MSC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Profitability

This table compares Eldorado Resorts and Studio City International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eldorado Resorts 5.00% 11.41% 2.34%
Studio City International N/A N/A N/A

Earnings & Valuation

This table compares Eldorado Resorts and Studio City International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Resorts $2.06 billion 1.87 $95.24 million $1.38 35.91
Studio City International $571.21 million 2.64 -$20.75 million ($0.24) -79.96

Eldorado Resorts has higher revenue and earnings than Studio City International. Studio City International is trading at a lower price-to-earnings ratio than Eldorado Resorts, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

85.7% of Eldorado Resorts shares are owned by institutional investors. Comparatively, 22.0% of Studio City International shares are owned by institutional investors. 1.5% of Eldorado Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Eldorado Resorts and Studio City International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Resorts 0 1 5 0 2.83
Studio City International 2 0 0 0 1.00

Eldorado Resorts currently has a consensus price target of $55.67, suggesting a potential upside of 12.32%. Studio City International has a consensus price target of $20.00, suggesting a potential upside of 4.22%. Given Eldorado Resorts’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Eldorado Resorts is more favorable than Studio City International.

Summary

Eldorado Resorts beats Studio City International on 12 of the 13 factors compared between the two stocks.

About Eldorado Resorts

Eldorado Resorts, Inc. operates as a gaming and hospitality company in the United States. It owns and operates Eldorado Resort Casino Reno, a hotel, casino, and entertainment facility; Silver Legacy Resort Casino, a themed hotel and casino; Circus Circus Reno, a hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino. The company also operates Isle Casino Hotel—Black Hawk and Lady Luck Casino—Black Hawk land-based casinos; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based single-level casino; Isle Casino Waterloo, a single-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a gaming vessel; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg and Isle of Capri Casino Kansas City dockside casinos; Isle of Capri Casino Boonville, a single-level dockside casino; Isle Casino Cape Girardeau, a dockside casino, and pavilion and entertainment center; Lady Luck Casino Caruthersville, a riverboat casino; and Lady Luck Casino Nemacolin, a casino property. In addition, it operates Tropicana Casino and Resort, Atlantic City, a casino and resort; Tropicana Evansville, a casino hotel and entertainment complex; Lumière Place Casino, Tropicana Laughlin Hotel and Casino, MontBleu Casino Resort & Spa, and Grand Victoria Casino; Trop Casino Greenville, a landside gaming facility; Belle of Baton Rouge Casino & Hotel, a dockside riverboat; and Racelinebet.com. As of December 31, 2018, it owned 28 gaming facilities with approximately 30,000 slot machines and video lottery terminals; 800 table games; and 12,600 hotel rooms. The company was founded in 1973 and is based in Reno, Nevada.

About Studio City International

Studio City International Holdings Ltd. is a gaming, retail and entertainment resort located in Cotai, Macau. It engages in the hospitality business and provision of gaming related services in Macau. The company was founded on August 2, 2000 and is headquartered in Hong Kong.

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