Roblox (NYSE:RBLX – Get Free Report) and Monarch Casino & Resort (NASDAQ:MCRI – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Analyst Recommendations
This is a summary of recent ratings and target prices for Roblox and Monarch Casino & Resort, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roblox | 3 | 8 | 20 | 0 | 2.55 |
| Monarch Casino & Resort | 0 | 5 | 2 | 0 | 2.29 |
Roblox presently has a consensus target price of $136.41, suggesting a potential upside of 40.15%. Monarch Casino & Resort has a consensus target price of $94.60, suggesting a potential downside of 0.37%. Given Roblox’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Roblox is more favorable than Monarch Casino & Resort.
Volatility & Risk
Insider & Institutional Ownership
94.5% of Roblox shares are held by institutional investors. Comparatively, 62.4% of Monarch Casino & Resort shares are held by institutional investors. 12.9% of Roblox shares are held by insiders. Comparatively, 25.5% of Monarch Casino & Resort shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Roblox and Monarch Casino & Resort’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roblox | -21.70% | -314.20% | -12.47% |
| Monarch Casino & Resort | 19.26% | 19.33% | 14.67% |
Valuation and Earnings
This table compares Roblox and Monarch Casino & Resort”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roblox | $4.46 billion | 14.28 | -$935.38 million | ($1.43) | -68.06 |
| Monarch Casino & Resort | $539.64 million | 3.21 | $72.77 million | $5.54 | 17.14 |
Monarch Casino & Resort has lower revenue, but higher earnings than Roblox. Roblox is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.
About Roblox
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
About Monarch Casino & Resort
Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.
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