Red Rock Resorts (RRR) versus Its Rivals Head to Head Analysis

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

Profitability

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This table compares Red Rock Resorts and its competitors’ 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%

Institutional & Insider Ownership

63.2% of Red Rock Resorts shares are held by institutional investors. Comparatively, 70.3% of shares of all “Hotels & motels” companies are held by institutional investors. 40.9% of Red Rock Resorts shares are held by insiders. Comparatively, 17.4% of shares of all “Hotels & motels” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Red Rock Resorts pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. 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 1.7% and pay out 48.0% of their earnings in the form of a dividend. Red Rock Resorts lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Red Rock Resorts $1.62 billion $35.15 million 48.58
Red Rock Resorts Competitors $3.57 billion $470.05 million 187.74

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

Analyst Recommendations

This is a summary of current recommendations for Red Rock Resorts and its competitors, as provided by MarketBeat.com.

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 1441 2188 74 2.51

Red Rock Resorts currently has a consensus price target of $31.86, indicating a potential upside of 5.77%. As a group, “Hotels & motels” companies have a potential upside of 0.14%. Given Red Rock Resorts’ higher probable upside, research analysts plainly believe Red Rock Resorts is more favorable than its competitors.

Risk & Volatility

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

Summary

Red Rock Resorts competitors 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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