Red Rock Resorts, Inc. (RRR) vs Marriott Vacations Worldwide Corporation (VAC)

Red Rock Resorts, Inc. and Marriott Vacations Worldwide Corporation are both Resorts & Casinos companies. Red Rock Resorts, Inc. is the larger, with a market value of $5.3B against $3.9B — 1.4× the size. Marriott Vacations Worldwide Corporation has negative trailing earnings, so its P/E is not meaningful; Red Rock Resorts, Inc. trades at 17.0×. Marriott Vacations Worldwide Corporation grew revenue faster over the last twelve months: 1.67% against 0.86%. Red Rock Resorts, Inc. has the higher net margin (8.43% vs −6.47%) and the higher return on invested capital (9.19% vs −1.51%). Both pay a dividend; Marriott Vacations Worldwide Corporation yields more (2.88% vs 2.11%). Across the 20 metrics below, Red Rock Resorts, Inc. leads on 10 and Marriott Vacations Worldwide Corporation on 10.

Valuation

Metric RRR VAC Resorts & Casinos median
P/E 16.99 n/m 17.15
P/S 1.42 0.75 0.53
P/B 9.77 1.88 2.09
Price to free cash flow 14.75 37.91 9.94
EV/EBITDA 8.22 n/m 8.87
EV/Sales 3.16 1.71 1.78
Earnings yield 5.88% (8.68%) 1.35%
Free cash flow yield 6.78% 2.64% 7.20%

Profitability

Metric RRR VAC Resorts & Casinos median
Gross margin 62.13% 90.72% 50.85%
Operating margin 27.67% (3.27%) 10.41%
Net margin 8.43% (6.47%) 1.28%
Free cash flow margin 9.65% 1.98% 4.23%
Return on equity 57.37% (14.71%) 5.28%
Return on assets 4.02% (3.45%) 0.57%
Return on invested capital 9.19% (1.51%) 5.61%

Growth

Metric RRR VAC Resorts & Casinos median
Revenue growth (TTM) 0.86% 1.67% 2.76%
EPS growth (last fiscal year) 23.32% (257.58%) 8.54%
Revenue growth, 5-year CAGR 11.21% 11.76% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RRR VAC Resorts & Casinos median
Debt to equity 12.39 2.65 1.94
Current ratio 0.68 3.56 0.91
Net debt to EBITDA 4.13 (1,236.75) 3.48

Dividend

Metric RRR VAC Resorts & Casinos median
Dividend yield 2.11% 2.88% 1.94%
Payout ratio 0.37 — 0.37

Size

Metric RRR VAC Resorts & Casinos median
Market cap 5.30b 3.86b 2.44b

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