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 $2.3B against $1.7B — 1.3× the size. PENN Entertainment, Inc. has negative trailing earnings, so its P/E is not meaningful; Melco Resorts & Entertainment Limited trades at 7.6×. PENN Entertainment, Inc. grew revenue faster over the last twelve months: 6.72% against 5.99%. Melco Resorts & Entertainment Limited has the higher net margin (4.50% vs −0.12%) and the lower return on invested capital (8.05% vs 24.8%). Across the 18 metrics below, Melco Resorts & Entertainment Limited leads on 11 and PENN Entertainment, Inc. on 7.

Valuation

Metric MLCO PENN Resorts & Casinos median
P/E 7.60 n/m 16.84
P/S 0.34 0.32 0.57
P/B n/m 1.22 2.02
Price to free cash flow 1.83 9.91 10.86
EV/EBITDA 12.62 n/m 8.92
EV/Sales 1.54 1.15 1.79
Earnings yield 13.16% (0.40%) 2.61%
Free cash flow yield 54.59% 10.09% 7.35%

Profitability

Metric MLCO PENN Resorts & Casinos median
Gross margin 36.85% 0.00% 47.52%
Operating margin 12.21% 4.65% 12.21%
Net margin 4.50% (0.12%) 3.87%
Free cash flow margin 0.00% 4.01% 5.15%
Return on equity (19.59%) (0.47%) 19.64%
Return on assets 3.09% (0.06%) 1.70%
Return on invested capital 8.05% 24.83% 6.38%

Growth

Metric MLCO PENN Resorts & Casinos median
Revenue growth (TTM) 5.99% 6.72% 3.08%
EPS growth (last fiscal year) 360.00% (184.39%) 3.45%
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) 0.00 0.06
Current ratio 1.01 0.96 0.91
Net debt to EBITDA 5.04 (30.04) 4.00

Dividend

Metric MLCO PENN Resorts & Casinos median
Dividend yield — — 1.98%
Payout ratio — — 0.49

Size

Metric MLCO PENN Resorts & Casinos median
Market cap 1.73b 2.32b 3.32b

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