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Head-To-Head Analysis: Golden Entertainment (GDEN) and Melco Crown Entertainment Limited (MLCO)
Golden Entertainment (NASDAQ: GDEN) and Melco Crown Entertainment Limited (NASDAQ:MLCO) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
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Volatility & Risk
Golden Entertainment has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500. Comparatively, Melco Crown Entertainment Limited has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.
Dividends
Melco Crown Entertainment Limited pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Golden Entertainment does not pay a dividend. Melco Crown Entertainment Limited pays out 61.5% of its earnings in the form of a dividend.
Analyst Ratings
This is a summary of recent recommendations for Golden Entertainment and Melco Crown Entertainment Limited, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golden Entertainment | 0 | 1 | 0 | 0 | 2.00 |
| Melco Crown Entertainment Limited | 1 | 5 | 9 | 0 | 2.53 |
Golden Entertainment presently has a consensus target price of $13.00, suggesting a potential downside of 36.43%. Melco Crown Entertainment Limited has a consensus target price of $20.98, suggesting a potential upside of 4.38%. Given Melco Crown Entertainment Limited’s stronger consensus rating and higher probable upside, analysts plainly believe Melco Crown Entertainment Limited is more favorable than Golden Entertainment.
Valuation and Earnings
This table compares Golden Entertainment and Melco Crown Entertainment Limited’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Golden Entertainment | $426.75 million | 1.07 | $44.77 million | $0.80 | 25.56 |
| Melco Crown Entertainment Limited | $4.92 billion | 2.00 | $1.11 billion | $0.52 | 38.65 |
Melco Crown Entertainment Limited has higher revenue and earnings than Golden Entertainment. Golden Entertainment is trading at a lower price-to-earnings ratio than Melco Crown Entertainment Limited, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Golden Entertainment and Melco Crown Entertainment Limited’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Golden Entertainment | 4.29% | 6.26% | 3.17% |
| Melco Crown Entertainment Limited | 5.11% | 9.20% | 3.59% |
Institutional & Insider Ownership
26.7% of Golden Entertainment shares are owned by institutional investors. Comparatively, 40.3% of Melco Crown Entertainment Limited shares are owned by institutional investors. 52.0% of Golden Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Melco Crown Entertainment Limited beats Golden Entertainment on 12 of the 16 factors compared between the two stocks.
Golden Entertainment Company Profile
Melco Crown Entertainment Limited Company Profile