Analyzing PLAYSTUDIOS (NASDAQ:MYPS) & Melco International Development (OTCMKTS:MDEVF)

Melco International Development (OTCMKTS:MDEVF) and PLAYSTUDIOS (NASDAQ:MYPS) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares Melco International Development and PLAYSTUDIOS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Melco International Development	$4.64 billion	0.17	-$100.59 million	N/A	N/A
PLAYSTUDIOS	$289.43 million	0.27	-$28.69 million	($0.29)	-2.14

PLAYSTUDIOS has lower revenue, but higher earnings than Melco International Development.

Profitability

This table compares Melco International Development and PLAYSTUDIOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Melco International Development	N/A	N/A	N/A
PLAYSTUDIOS	-15.10%	-8.71%	-6.77%

Risk and Volatility

Melco International Development has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Melco International Development and PLAYSTUDIOS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Melco International Development	0	0	0	0	0.00
PLAYSTUDIOS	2	1	2	0	2.00

PLAYSTUDIOS has a consensus target price of $2.00, indicating a potential upside of 222.11%. Given PLAYSTUDIOS’s stronger consensus rating and higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than Melco International Development.

Insider and Institutional Ownership

37.5% of PLAYSTUDIOS shares are owned by institutional investors. 14.7% of PLAYSTUDIOS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

PLAYSTUDIOS beats Melco International Development on 8 of the 12 factors compared between the two stocks.

About Melco International Development

Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, Cyprus, and Japan. It operates in two segments: Casino and Hospitality, and Others. The company develops, owns, and operates a network of casino gaming and entertainment casino resorts. It also involved in the development and operation of integrated casino and entertainment resort, and related activities; and operation of satellite casinos. In addition, the company provides financing, management, and property investment services. Further, it operates electronic gaming machines. The company was formerly known as The Macao Electric Lighting Company, Limited and changed its name to Melco International Development Limited in 1988. Melco International Development Limited was incorporated in 1910 and is headquartered in Central, Hong Kong.

About PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.