Head-To-Head Comparison: Red Rock Resorts (RRR) and Century Casinos (CNTY)

Red Rock Resorts (NASDAQ:RRR) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations for Red Rock Resorts and Century Casinos, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Rock Resorts 0 1 3 0 2.75
Century Casinos 0 1 1 0 2.50

Red Rock Resorts presently has a consensus price target of $31.50, indicating a potential upside of 13.84%. Century Casinos has a consensus price target of $13.00, indicating a potential upside of 45.58%. Given Century Casinos’ higher possible upside, analysts clearly believe Century Casinos is more favorable than Red Rock Resorts.

Earnings & Valuation

This table compares Red Rock Resorts and Century Casinos’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red Rock Resorts $1.68 billion 1.92 $157.54 million $1.31 21.12
Century Casinos $168.94 million 1.56 $3.39 million $0.11 81.18

Red Rock Resorts has higher revenue and earnings than Century Casinos. Red Rock Resorts is trading at a lower price-to-earnings ratio than Century Casinos, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Red Rock Resorts 9.37% 12.06% 2.47%
Century Casinos 2.01% 1.91% 1.29%

Institutional & Insider Ownership

63.6% of Red Rock Resorts shares are held by institutional investors. Comparatively, 77.9% of Century Casinos shares are held by institutional investors. 0.4% of Red Rock Resorts shares are held by insiders. Comparatively, 12.7% of Century Casinos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company 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 1.4%. Century Casinos does not pay a dividend. Red Rock Resorts pays out 30.5% of its earnings in the form of a dividend.

Risk & Volatility

Red Rock Resorts has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Summary

Red Rock Resorts beats Century Casinos on 11 of the 16 factors compared between the two stocks.

About Red Rock Resorts

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.

About Century Casinos

Century Casinos, Inc. operates as a casino entertainment company worldwide. The company develops and operates gaming establishments, as well as related lodging, restaurant, horse racing, and entertainment facilities. It owns and operates casinos in North America and Poland; a racetrack and entertainment center in Canada; and pari-mutuel off-track betting network in southern Alberta, Canada. The company also manages cruise ship-based casinos; and provides gaming services in Argentina. As of March 9, 2018, it operated 14 ship-based casinos. The company was founded in 1992 and is based in Colorado Springs, Colorado.

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