Melco Resorts & Entertainment Limited (MLCO) vs Red Rock Resorts, Inc. (RRR)

Melco Resorts & Entertainment Limited and Red Rock Resorts, Inc. are both Resorts & Casinos companies. Red Rock Resorts, Inc. is the larger, with a market value of $5.3B against $1.6B — 3.3× the size. Melco Resorts & Entertainment Limited trades at the lower P/E: 7.1× against 17.1×. Melco Resorts & Entertainment Limited grew revenue faster over the last twelve months: 5.99% against 0.86%. Red Rock Resorts, Inc. has the higher net margin (8.43% vs 4.50%) and the higher return on invested capital (9.19% vs 8.05%). Across the 20 metrics below, Melco Resorts & Entertainment Limited leads on 11 and Red Rock Resorts, Inc. on 9.

Valuation

Metric MLCO RRR Resorts & Casinos median
P/E 7.07 17.07 17.31
P/S 0.32 1.43 0.52
P/B n/m 9.82 2.07
Price to free cash flow 1.70 14.82 11.14
EV/EBITDA 12.42 8.23 8.85
EV/Sales 1.52 3.17 1.78
Earnings yield 14.15% 5.86% 1.39%
Free cash flow yield 58.71% 6.75% 7.16%

Profitability

Metric MLCO RRR Resorts & Casinos median
Gross margin 36.85% 62.13% 50.85%
Operating margin 12.21% 27.67% 10.41%
Net margin 4.50% 8.43% 1.28%
Free cash flow margin 0.00% 9.65% 4.23%
Return on equity (19.59%) 57.37% 5.28%
Return on assets 3.09% 4.02% 0.57%
Return on invested capital 8.05% 9.19% 5.61%

Growth

Metric MLCO RRR Resorts & Casinos median
Revenue growth (TTM) 5.99% 0.86% 2.76%
EPS growth (last fiscal year) 360.00% 23.32% 8.54%
Revenue growth, 5-year CAGR 24.47% 11.21% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MLCO RRR Resorts & Casinos median
Debt to equity (5.43) 12.39 1.94
Current ratio 1.01 0.68 0.91
Net debt to EBITDA 5.04 4.13 3.48

Dividend

Metric MLCO RRR Resorts & Casinos median
Dividend yield — 2.10% 1.94%
Payout ratio — 0.37 0.37

Size

Metric MLCO RRR Resorts & Casinos median
Market cap 1.59b 5.29b 2.40b

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