Analyzing Red Rock Resorts (RRR) & Its Competitors

Red Rock Resorts (NASDAQ:RRR) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its rivals? We will compare Red Rock Resorts to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.

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	8.43%	56.19%	4.01%
Red Rock Resorts Competitors	2.36%	-40.12%	2.12%

Analyst Ratings

This is a summary of recent ratings 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	14	1	2.84
Red Rock Resorts Competitors	3792	17186	25458	901	2.50

Red Rock Resorts presently has a consensus target price of $72.06, indicating a potential upside of 39.83%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 57.36%. Given Red Rock Resorts’ rivals higher possible upside, analysts clearly believe Red Rock Resorts has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

47.8% of Red Rock Resorts shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 54.3% of Red Rock Resorts shares are owned by insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are owned 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.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Red Rock Resorts	$2.00 billion	$188.07 million	18.21
Red Rock Resorts Competitors	$3.43 billion	$250.20 million	-146.34

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

Dividends

Red Rock Resorts pays an annual dividend of $1.04 per share and has a dividend yield of 2.0%. Red Rock Resorts pays out 36.7% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.1% of their earnings in the form of a dividend.

Volatility & Risk

Red Rock Resorts has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Red Rock Resorts’ rivals have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Summary

Red Rock Resorts beats its rivals on 9 of the 15 factors compared.

Red Rock Resorts Company Profile

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.