MGM Resorts International (MGM)vsMelco Resorts & Entertainment Ltd (MLCO)
MGM
MGM Resorts International
$37.49
+1.02%
CONSUMER CYCLICAL · Cap: $10.15B
MLCO
Melco Resorts & Entertainment Ltd
$5.48
-0.72%
CONSUMER CYCLICAL · Cap: $2.25B
Smart Verdict
WallStSmart Research — data-driven comparison
MGM Resorts International generates 240% more annual revenue ($17.54B vs $5.16B). MLCO leads profitability with a 3.6% profit margin vs 1.2%. MLCO appears more attractively valued with a PEG of 0.41. MGM earns a higher WallStSmart Score of 65/100 (C+).
MGM
Buy65
out of 100
Grade: C+
MLCO
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.2%
Fair Value
$35.57
Current Price
$37.49
$1.92 premium
Margin of Safety
+71.4%
Fair Value
$21.53
Current Price
$5.48
$16.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 115.7% YoY
Growing faster than its price suggests
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
1.2% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Elevated debt levels
2.0% earnings growth
3.6% margin — thin
ROE of -21.6% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : MGM
The strongest argument for MGM centers on EPS Growth, PEG Ratio. PEG of 0.96 suggests the stock is reasonably priced for its growth.
Bull Case : MLCO
The strongest argument for MLCO centers on PEG Ratio, P/E Ratio. PEG of 0.41 suggests the stock is reasonably priced for its growth.
Bear Case : MGM
The primary concerns for MGM are Profit Margin, P/E Ratio, Altman Z-Score. A P/E of 48.8x leaves little room for execution misses. Debt-to-equity of 23.11 is elevated, increasing financial risk.
Bear Case : MLCO
The primary concerns for MLCO are EPS Growth, Profit Margin, Return on Equity. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
MGM carries more volatility with a beta of 1.40 — expect wider price swings.
MLCO is growing revenue faster at 8.6% — sustainability is the question.
Monitor RESORTS & CASINOS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MGM scores higher overall (65/100 vs 57/100). MLCO offers better value entry with a 71.4% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
MGM Resorts International
CONSUMER CYCLICAL · RESORTS & CASINOS · USA
MGM Resorts International is an American global hospitality and entertainment company operating destination resorts globally.
Visit Website →Melco Resorts & Entertainment Ltd
CONSUMER CYCLICAL · RESORTS & CASINOS · USA
Melco Resorts & Entertainment Limited develops, owns and operates casino gaming facilities and resorts in Asia and Europe.
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