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 $5.2B against $1.5B — 3.5× the size. Melco Resorts & Entertainment Limited trades at the lower P/E: 6.5× against 16.9×. 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 6.53 16.93 17.17
P/S 0.29 1.42 0.58
P/B n/m 9.74 2.18
Price to free cash flow 1.57 14.70 9.54
EV/EBITDA 12.23 8.20 8.81
EV/Sales 1.49 3.15 1.73
Earnings yield 15.31% 5.91% 2.55%
Free cash flow yield 63.50% 6.80% 7.85%

Profitability

Metric MLCO RRR Resorts & Casinos median
Gross margin 36.85% 62.13% 49.00%
Operating margin 12.21% 27.67% 10.92%
Net margin 4.50% 8.43% 2.36%
Free cash flow margin 0.00% 9.65% 6.48%
Return on equity (19.59%) 57.37% 0.14%
Return on assets 3.09% 4.02% 1.03%
Return on invested capital 8.05% 9.19% 7.36%

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% 3.45%
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 2.08
Current ratio 1.01 0.68 0.91
Net debt to EBITDA 5.04 4.13 4.00

Dividend

Metric MLCO RRR Resorts & Casinos median
Dividend yield — 2.12% 1.95%
Payout ratio — 0.37 0.37

Size

Metric MLCO RRR Resorts & Casinos median
Market cap 1.46b 5.17b 2.78b

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