Critical Review: Murano Global Investments (NASDAQ:MRNO) & Melco Resorts & Entertainment (NASDAQ:MLCO)

Melco Resorts & Entertainment (NASDAQ:MLCO) and Murano Global Investments (NASDAQ:MRNO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

This table compares Melco Resorts & Entertainment and Murano Global Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Melco Resorts & Entertainment	-3.11%	-11.59%	1.12%
Murano Global Investments	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for Melco Resorts & Entertainment and Murano Global Investments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Melco Resorts & Entertainment	0	1	4	0	2.80
Murano Global Investments	0	0	0	0	N/A

Melco Resorts & Entertainment currently has a consensus target price of $9.82, indicating a potential upside of 20.20%. Given Melco Resorts & Entertainment’s higher probable upside, analysts plainly believe Melco Resorts & Entertainment is more favorable than Murano Global Investments.

Risk and Volatility

Melco Resorts & Entertainment has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Murano Global Investments has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Earnings & Valuation

This table compares Melco Resorts & Entertainment and Murano Global Investments”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Melco Resorts & Entertainment	$4.38 billion	0.83	-$326.92 million	($0.42)	-19.45
Murano Global Investments	$446.80 million	0.26	-$8.71 million	N/A	N/A

Murano Global Investments has lower revenue, but higher earnings than Melco Resorts & Entertainment.

Insider & Institutional Ownership

39.6% of Melco Resorts & Entertainment shares are owned by institutional investors. Comparatively, 11.8% of Murano Global Investments shares are owned by institutional investors. 57.1% of Melco Resorts & Entertainment shares are owned by insiders. Comparatively, 71.2% of Murano Global Investments shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Melco Resorts & Entertainment beats Murano Global Investments on 7 of the 11 factors compared between the two stocks.

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.

About Murano Global Investments

HCM Acquisition Corp is a blank check company. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or related business combination with one or more businesses. HCM Acquisition Corp is based in Stamford, Connecticut.