Caesars Entertainment, Inc. (CZR) vs Red Rock Resorts, Inc. (RRR)

Caesars Entertainment, Inc. and Red Rock Resorts, Inc. are both Resorts & Casinos companies. Caesars Entertainment, Inc. is the larger, with a market value of $6.0B against $5.4B — 1.1× the size. Caesars Entertainment, Inc. has negative trailing earnings, so its P/E is not meaningful; Red Rock Resorts, Inc. trades at 17.5×. Caesars Entertainment, Inc. grew revenue faster over the last twelve months: 2.41% against 0.86%. Red Rock Resorts, Inc. has the higher net margin (8.43% vs −3.99%) and the higher return on invested capital (9.19% vs 7.36%). Across the 20 metrics below, Caesars Entertainment, Inc. leads on 11 and Red Rock Resorts, Inc. on 9.

Valuation

Metric CZR RRR Resorts & Casinos median
P/E n/m 17.50 18.52
P/S 0.52 1.47 0.54
P/B 1.70 10.07 2.13
Price to free cash flow 7.31 15.19 13.62
EV/EBITDA 5.01 8.33 9.18
EV/Sales 1.57 3.20 1.80
Earnings yield (7.70%) 5.71% 1.69%
Free cash flow yield 13.68% 6.58% 6.51%

Profitability

Metric CZR RRR Resorts & Casinos median
Gross margin 53.21% 62.13% 50.85%
Operating margin 15.94% 27.67% 10.41%
Net margin (3.99%) 8.43% 1.28%
Free cash flow margin 7.25% 9.65% 4.23%
Return on equity (12.12%) 57.37% 5.28%
Return on assets (1.45%) 4.02% 0.57%
Return on invested capital 7.36% 9.19% 5.61%

Growth

Metric CZR RRR Resorts & Casinos median
Revenue growth (TTM) 2.41% 0.86% 2.76%
EPS growth (last fiscal year) (87.60%) 23.32% —
Revenue growth, 5-year CAGR 25.92% 11.21% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CZR RRR Resorts & Casinos median
Debt to equity 3.74 12.39 1.94
Current ratio 0.85 0.68 0.91
Net debt to EBITDA 2.95 4.13 3.08

Dividend

Metric CZR RRR Resorts & Casinos median
Dividend yield — 3.24% 1.27%
Payout ratio 0.00 0.27 0.00

Size

Metric CZR RRR Resorts & Casinos median
Market cap 6.02b 5.42b 2.43b

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