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 $7.4B against $5.3B — 1.4× the size. MGM Resorts International trades at the lower P/E: 17.0× against 17.0×. 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%). Across the 21 metrics below, MGM Resorts International leads on 15 and Red Rock Resorts, Inc. on 6.

Valuation

Metric MGM RRR Resorts & Casinos median
P/E 16.95 16.99 17.15
P/S 0.41 1.42 0.53
P/B 2.15 9.77 2.09
Price to free cash flow 3.59 14.75 9.94
EV/EBITDA 4.54 8.22 8.87
EV/Sales 0.64 3.16 1.78
Earnings yield 5.90% 5.88% 1.35%
Free cash flow yield 27.84% 6.78% 7.20%

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% 8.54%
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 3.48

Dividend

Metric MGM RRR Resorts & Casinos median
Dividend yield — 2.11% 1.94%
Payout ratio — 0.37 0.37

Size

Metric MGM RRR Resorts & Casinos median
Market cap 7.42b 5.30b 2.44b

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