PENN Entertainment, Inc. (PENN) vs Red Rock Resorts, Inc. (RRR)

PENN Entertainment, Inc. 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 $2.1B — 2.5× the size. PENN Entertainment, Inc. has negative trailing earnings, so its P/E is not meaningful; Red Rock Resorts, Inc. trades at 16.9×. PENN Entertainment, Inc. grew revenue faster over the last twelve months: 6.14% against 0.86%. Red Rock Resorts, Inc. has the higher net margin (8.43% vs −12.7%) and the higher return on invested capital (9.19% vs −4.38%). Across the 19 metrics below, Red Rock Resorts, Inc. leads on 11 and PENN Entertainment, Inc. on 8.

Valuation

Metric PENN RRR Resorts & Casinos median
P/E n/m 16.93 17.17
P/S 0.30 1.42 0.58
P/B 1.14 9.74 2.18
Price to free cash flow 55.88 14.70 9.54
EV/EBITDA n/m 8.20 8.81
EV/Sales 1.16 3.15 1.73
Earnings yield (40.09%) 5.91% 2.55%
Free cash flow yield 1.79% 6.80% 7.85%

Profitability

Metric PENN RRR Resorts & Casinos median
Gross margin 35.16% 62.13% 49.00%
Operating margin (7.89%) 27.67% 10.92%
Net margin (12.66%) 8.43% 2.36%
Free cash flow margin 0.53% 9.65% 6.48%
Return on equity (37.49%) 57.37% 0.14%
Return on assets (6.19%) 4.02% 1.03%
Return on invested capital (4.38%) 9.19% 7.36%

Growth

Metric PENN RRR Resorts & Casinos median
Revenue growth (TTM) 6.14% 0.86% 2.76%
EPS growth (last fiscal year) (184.39%) 23.32% 3.45%
Revenue growth, 5-year CAGR 14.23% 11.21% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PENN RRR Resorts & Casinos median
Debt to equity 3.83 12.39 2.08
Current ratio 0.89 0.68 0.91
Net debt to EBITDA (30.04) 4.13 4.00

Dividend

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

Size

Metric PENN RRR Resorts & Casinos median
Market cap 2.06b 5.17b 2.78b

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