Melco Resorts & Entertainment Limited (MLCO) vs Marriott Vacations Worldwide Corporation (VAC)

Melco Resorts & Entertainment Limited and Marriott Vacations Worldwide Corporation are both Resorts & Casinos companies. Marriott Vacations Worldwide Corporation is the larger, with a market value of $3.5B against $1.8B — 1.9× the size. Marriott Vacations Worldwide Corporation has negative trailing earnings, so its P/E is not meaningful; Melco Resorts & Entertainment Limited trades at 7.9×. Melco Resorts & Entertainment Limited grew revenue faster over the last twelve months: 5.99% against 1.67%. Melco Resorts & Entertainment Limited has the higher net margin (4.50% vs −6.47%) and the higher return on invested capital (8.05% vs −1.51%). Across the 18 metrics below, Melco Resorts & Entertainment Limited leads on 13 and Marriott Vacations Worldwide Corporation on 5.

Valuation

Metric MLCO VAC Resorts & Casinos median
P/E 7.88 n/m 18.52
P/S 0.35 0.69 0.54
P/B n/m 1.74 2.13
Price to free cash flow 1.90 35.08 13.62
EV/EBITDA 12.72 n/m 9.18
EV/Sales 1.55 1.65 1.80
Earnings yield 12.68% (9.39%) 1.69%
Free cash flow yield 52.63% 2.85% 6.51%

Profitability

Metric MLCO VAC Resorts & Casinos median
Gross margin 36.85% 90.72% 50.85%
Operating margin 12.21% (3.27%) 10.41%
Net margin 4.50% (6.47%) 1.28%
Free cash flow margin 0.00% 1.98% 4.23%
Return on equity (19.59%) (14.71%) 5.28%
Return on assets 3.09% (3.45%) 0.57%
Return on invested capital 8.05% (1.51%) 5.61%

Growth

Metric MLCO VAC Resorts & Casinos median
Revenue growth (TTM) 5.99% 1.67% 2.76%
EPS growth (last fiscal year) 360.00% (257.58%) —
Revenue growth, 5-year CAGR 24.47% 11.76% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MLCO VAC Resorts & Casinos median
Debt to equity (5.43) 2.65 1.94
Current ratio 1.01 3.56 0.91
Net debt to EBITDA 5.04 (1,236.75) 3.08

Dividend

Metric MLCO VAC Resorts & Casinos median
Dividend yield — 2.28% 1.27%
Payout ratio 0.00 0.32 0.00

Size

Metric MLCO VAC Resorts & Casinos median
Market cap 1.80b 3.47b 2.43b

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