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.
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|
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.
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%|
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.
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.
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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