MGM Resorts International (MGM) vs Red Rock Resorts, Inc. (RRR)

MGM Resorts International and Red Rock Resorts, Inc. are both Resorts & Casinos companies. MGM Resorts International is the larger, with a market value of $8.5B against $5.4B — 1.6× the size. Red Rock Resorts, Inc. trades at the lower P/E: 17.5× against 19.4×. MGM Resorts International grew revenue faster over the last twelve months: 3.19% against 0.86%. Red Rock Resorts, Inc. has the higher net margin (8.43% vs 2.36%) and the lower return on invested capital (9.19% vs 9.23%). Both pay a dividend; Red Rock Resorts, Inc. yields more (3.24% vs 0.03%). Across the 22 metrics below, MGM Resorts International leads on 13 and Red Rock Resorts, Inc. on 9.

Valuation

Metric MGM RRR Resorts & Casinos median
P/E 19.39 17.50 18.52
P/S 0.47 1.47 0.54
P/B 2.46 10.07 2.13
Price to free cash flow 4.11 15.19 13.62
EV/EBITDA 4.95 8.33 9.18
EV/Sales 0.70 3.20 1.80
Earnings yield 5.16% 5.71% 1.69%
Free cash flow yield 24.34% 6.58% 6.51%

Profitability

Metric MGM RRR Resorts & Casinos median
Gross margin 44.16% 62.13% 50.85%
Operating margin 5.73% 27.67% 10.41%
Net margin 2.36% 8.43% 1.28%
Free cash flow margin 11.34% 9.65% 4.23%
Return on equity 11.82% 57.37% 5.28%
Return on assets 1.03% 4.02% 0.57%
Return on invested capital 9.23% 9.19% 5.61%

Growth

Metric MGM RRR Resorts & Casinos median
Revenue growth (TTM) 3.19% 0.86% 2.76%
EPS growth (last fiscal year) (68.33%) 23.32% —
Revenue growth, 5-year CAGR 27.71% 11.21% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MGM RRR Resorts & Casinos median
Debt to equity 1.80 12.39 1.94
Current ratio 1.34 0.68 0.91
Net debt to EBITDA 1.79 4.13 3.08

Dividend

Metric MGM RRR Resorts & Casinos median
Dividend yield 0.03% 3.24% 1.27%
Payout ratio 0.00 0.27 0.00

Size

Metric MGM RRR Resorts & Casinos median
Market cap 8.51b 5.42b 2.43b

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