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 $5.3B 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 17.1×. 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 17.07 17.31
P/S 0.29 1.43 0.52
P/B 1.12 9.82 2.07
Price to free cash flow 54.61 14.82 11.14
EV/EBITDA n/m 8.23 8.85
EV/Sales 1.16 3.17 1.78
Earnings yield (41.02%) 5.86% 1.39%
Free cash flow yield 1.83% 6.75% 7.16%

Profitability

Metric PENN RRR Resorts & Casinos median
Gross margin 35.16% 62.13% 50.85%
Operating margin (7.89%) 27.67% 10.41%
Net margin (12.66%) 8.43% 1.28%
Free cash flow margin 0.53% 9.65% 4.23%
Return on equity (37.49%) 57.37% 5.28%
Return on assets (6.19%) 4.02% 0.57%
Return on invested capital (4.38%) 9.19% 5.61%

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% 8.54%
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 1.94
Current ratio 0.89 0.68 0.91
Net debt to EBITDA (30.04) 4.13 3.48

Dividend

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

Size

Metric PENN RRR Resorts & Casinos median
Market cap 2.11b 5.29b 2.40b

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