Financial Review: Big Buck Brewery & Steakhouse (OTCMKTS:BBUCQ) & Red Rock Resorts (NASDAQ:RRR)

Big Buck Brewery & Steakhouse (OTCMKTS:BBUCQ) and Red Rock Resorts (NASDAQ:RRR) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Risk and Volatility

Big Buck Brewery & Steakhouse has a beta of 10.6, suggesting that its share price is 960% more volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Valuation & Earnings

This table compares Big Buck Brewery & Steakhouse and Red Rock Resorts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Buck Brewery & Steakhouse	N/A	N/A	N/A	N/A	N/A
Red Rock Resorts	$2.01 billion	3.20	$188.07 million	$2.83	21.64

Red Rock Resorts has higher revenue and earnings than Big Buck Brewery & Steakhouse.

Profitability

This table compares Big Buck Brewery & Steakhouse and Red Rock Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Buck Brewery & Steakhouse	N/A	N/A	N/A
Red Rock Resorts	8.43%	56.19%	4.01%

Analyst Recommendations

This is a summary of current ratings and target prices for Big Buck Brewery & Steakhouse and Red Rock Resorts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Buck Brewery & Steakhouse	0	0	0	0	0.00
Red Rock Resorts	0	4	14	0	2.78

Red Rock Resorts has a consensus target price of $71.88, suggesting a potential upside of 17.36%. Given Red Rock Resorts’ stronger consensus rating and higher possible upside, analysts clearly believe Red Rock Resorts is more favorable than Big Buck Brewery & Steakhouse.

Insider and Institutional Ownership

47.8% of Red Rock Resorts shares are held by institutional investors. 43.0% of Big Buck Brewery & Steakhouse shares are held by insiders. Comparatively, 54.3% of Red Rock Resorts shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Red Rock Resorts beats Big Buck Brewery & Steakhouse on 9 of the 10 factors compared between the two stocks.

About Big Buck Brewery & Steakhouse

Big Buck Brewery & Steakhouse, Inc. engages in the development and operation of restaurant-brewpubs. It operates one unit each in the cities of Gaylord, Grand Rapids, and Auburn Hills, in Michigan. In addition, it has a unit in Grapevine, Texas, a suburb of Dallas under a joint venture agreement with Bass Pro Outdoor World, LLC. The company offers craft brewed beer brewed on site. Its units offer approximately 10 different types of beers ranging from light golden ale to full-bodied stout. It also offers customers, hard liquors; and also sells merchandise, including hats, t-shirts, sweatshirts, and other items bearing the Big Buck Brewery & Steakhouse name and logo.

About Red Rock Resorts

Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. 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. was founded in 1976 and is based in Las Vegas, Nevada.