Melco Resorts & Entertainment Limited (MLCO) vs PENN Entertainment, Inc. (PENN)

Melco Resorts & Entertainment Limited and PENN Entertainment, Inc. are both Resorts & Casinos companies. PENN Entertainment, Inc. is the larger, with a market value of $2.1B against $1.8B — 1.2× the size. PENN Entertainment, Inc. has negative trailing earnings, so its P/E is not meaningful; Melco Resorts & Entertainment Limited trades at 7.9×. PENN Entertainment, Inc. grew revenue faster over the last twelve months: 6.14% against 5.99%. Melco Resorts & Entertainment Limited has the higher net margin (4.50% vs −12.7%) and the higher return on invested capital (8.05% vs −4.38%). Across the 18 metrics below, Melco Resorts & Entertainment Limited leads on 13 and PENN Entertainment, Inc. on 5.

Valuation

Metric MLCO PENN Resorts & Casinos median
P/E 7.88 n/m 18.52
P/S 0.35 0.29 0.54
P/B n/m 1.13 2.13
Price to free cash flow 1.90 55.21 13.62
EV/EBITDA 12.72 n/m 9.18
EV/Sales 1.55 1.16 1.80
Earnings yield 12.68% (40.58%) 1.69%
Free cash flow yield 52.63% 1.81% 6.51%

Profitability

Metric MLCO PENN Resorts & Casinos median
Gross margin 36.85% 35.16% 50.85%
Operating margin 12.21% (7.89%) 10.41%
Net margin 4.50% (12.66%) 1.28%
Free cash flow margin 0.00% 0.53% 4.23%
Return on equity (19.59%) (37.49%) 5.28%
Return on assets 3.09% (6.19%) 0.57%
Return on invested capital 8.05% (4.38%) 5.61%

Growth

Metric MLCO PENN Resorts & Casinos median
Revenue growth (TTM) 5.99% 6.14% 2.76%
EPS growth (last fiscal year) 360.00% (184.39%) —
Revenue growth, 5-year CAGR 24.47% 14.23% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MLCO PENN Resorts & Casinos median
Debt to equity (5.43) 3.83 1.94
Current ratio 1.01 0.89 0.91
Net debt to EBITDA 5.04 (30.04) 3.08

Dividend

Metric MLCO PENN Resorts & Casinos median
Dividend yield — — 1.27%
Payout ratio 0.00 0.00 0.00

Size

Metric MLCO PENN Resorts & Casinos median
Market cap 1.80b 2.09b 2.43b

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