Melco Resorts & Entertainment and GameStop Compared

An analysis of the financial performance and outlook for these two consumer discretionary companies

Published on Feb. 14, 2026

Got story updates? Submit your updates here. ›

Melco Resorts & Entertainment (NASDAQ:MLCO) and GameStop (NYSE:GME) are both consumer discretionary companies, but which is the better investment? This article compares the two companies across key metrics like profitability, dividends, risk, institutional ownership, valuation, analyst recommendations, and earnings.

Why it matters

As consumer discretionary stocks, the performance of Melco Resorts & Entertainment and GameStop can provide insights into broader trends in consumer spending and the entertainment/gaming industry. Understanding the relative strengths and weaknesses of these two companies can help investors make more informed decisions.

The details

The analysis finds that Melco Resorts & Entertainment has lower revenue but higher earnings per share compared to GameStop. Melco also has a lower price-to-earnings ratio, indicating it is currently more affordable. Melco has stronger institutional ownership and insider ownership, suggesting greater confidence from large investors and management. Analysts also have a more favorable consensus rating and higher price target for Melco compared to GameStop.

  • The financial data and analysis is current as of February 14, 2026.

The players

Melco Resorts & Entertainment

A Hong Kong-based company that develops, owns, and operates casino gaming and entertainment resort facilities in Asia, including the City of Dreams, Altira Macau, and Studio City properties.

GameStop

A specialty retailer that sells new and pre-owned video games, gaming platforms, accessories, collectibles, and other pop culture merchandise through its stores and e-commerce platforms in the U.S., Canada, Australia, and Europe.

Got photos? Submit your photos here. ›

The takeaway

This analysis suggests that Melco Resorts & Entertainment may be the more favorable investment compared to GameStop based on its stronger financial performance, valuation, institutional backing, and analyst sentiment. However, investors should continue to monitor both companies' outlooks as the consumer discretionary sector faces ongoing challenges.