Soho House & Co Inc. (NYSE:SHCO – Get Rating) and Melco Resorts & Entertainment (NASDAQ:MLCO – Get Rating) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings for Soho House & Co Inc. and Melco Resorts & Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Soho House & Co Inc. | 0 | 0 | 0 | 0 | N/A |
| Melco Resorts & Entertainment | 0 | 1 | 2 | 0 | 2.67 |
Melco Resorts & Entertainment has a consensus target price of $10.75, suggesting a potential downside of 6.28%. Given Melco Resorts & Entertainment’s higher probable upside, analysts plainly believe Melco Resorts & Entertainment is more favorable than Soho House & Co Inc..
Risk & Volatility
Profitability
This table compares Soho House & Co Inc. and Melco Resorts & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Soho House & Co Inc. | -19.62% | -1,654.69% | -8.32% |
| Melco Resorts & Entertainment | -52.06% | -559.31% | -8.59% |
Earnings & Valuation
This table compares Soho House & Co Inc. and Melco Resorts & Entertainment’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Soho House & Co Inc. | $972.21 million | 1.39 | -$220.58 million | ($1.02) | -6.77 |
| Melco Resorts & Entertainment | $1.59 billion | 3.21 | -$930.53 million | ($1.81) | -6.34 |
Soho House & Co Inc. has higher earnings, but lower revenue than Melco Resorts & Entertainment. Soho House & Co Inc. is trading at a lower price-to-earnings ratio than Melco Resorts & Entertainment, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
68.0% of Soho House & Co Inc. shares are held by institutional investors. Comparatively, 39.7% of Melco Resorts & Entertainment shares are held by institutional investors. 73.0% of Soho House & Co Inc. shares are held by company insiders. Comparatively, 57.1% of Melco Resorts & Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Soho House & Co Inc. beats Melco Resorts & Entertainment on 7 of the 13 factors compared between the two stocks.
About Soho House & Co Inc.
The Membership Collective Group provides global membership platform of physical and digital spaces which connects a vibrant, diverse and global group of members. The members use the MCG platform to work, socialize, connect, create and flourish all over the world. The Membership Collective Group is based in London, the United Kingdom.
About Melco Resorts & Entertainment
Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 112 gaming tables and 56 gaming machines; 230 hotel rooms; various fine dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically-themed integrated entertainment, retail, and gaming resort that comprises 280 gaming tables and 980 gaming machines in Cotai, Macau. Further, the company owns and operates 7 Mocha Clubs with 1,034 gaming machines, as well as Taipa Square casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, a casino, hotel, retail, and entertainment integrated resort in the Entertainment City complex in Manila. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. Melco Resorts & Entertainment Limited was incorporated in 2004 and is based in Central, Hong Kong. As of February 16, 2017, Melco Resorts & Entertainment Limited operates as a subsidiary of Melco Leisure and Entertainment Group Limited.
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