Reviewing Red Rock Resorts (RRR) & Its Competitors

Red Rock Resorts (NASDAQ: RRR) is one of 30 publicly-traded companies in the “Hotels & motels” industry, but how does it contrast to its rivals? We will compare Red Rock Resorts to related companies based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, dividends, earnings and risk.

Valuation and Earnings

This table compares Red Rock Resorts and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Red Rock Resorts $1.62 billion $35.15 million 46.27
Red Rock Resorts Competitors $3.57 billion $470.05 million 162.05



Red Rock Resorts’ rivals have higher revenue and earnings than Red Rock Resorts. Red Rock Resorts is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Red Rock Resorts and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Rock Resorts 0 4 4 0 2.50
Red Rock Resorts Competitors 307 1438 2180 73 2.51

Red Rock Resorts currently has a consensus target price of $31.86, indicating a potential upside of 11.04%. As a group, “Hotels & motels” companies have a potential upside of 4.92%. Given Red Rock Resorts’ higher possible upside, analysts plainly believe Red Rock Resorts is more favorable than its rivals.

Dividends

Red Rock Resorts pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Red Rock Resorts pays out 64.5% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.8% and pay out 48.0% of their earnings in the form of a dividend. Red Rock Resorts lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Red Rock Resorts and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Red Rock Resorts 2.18% 16.11% 2.72%
Red Rock Resorts Competitors 10.97% 12.75% 4.81%

Risk & Volatility

Red Rock Resorts has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Red Rock Resorts’ rivals have a beta of 1.15, meaning that their average share price is 15% more volatile than the S&P 500.

Insider & Institutional Ownership

63.2% of Red Rock Resorts shares are owned by institutional investors. Comparatively, 70.3% of shares of all “Hotels & motels” companies are owned by institutional investors. 40.9% of Red Rock Resorts shares are owned by insiders. Comparatively, 17.6% of shares of all “Hotels & motels” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Red Rock Resorts rivals beat Red Rock Resorts on 11 of the 15 factors compared.

Red Rock Resorts Company Profile

Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, engages in casino entertainment, and gaming and entertainment businesses in the United States. It operates through two segments, Las Vegas operations and Native American management. The company develops, manages, and operates casino entertainment properties; and owns and operates 10 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort in Sonoma County, California; and Gun Lake in Allegan County, Michigan. It operates 19,219 slot machines; 319 table games; and 4,316 hotel rooms. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. is based in Las Vegas, Nevada.

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