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 $5.0B against $3.7B — 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 25.6×. Marriott Vacations Worldwide Corporation grew revenue faster over the last twelve months: 4.59% against 1.14%. Red Rock Resorts, Inc. has the higher net margin (5.79% vs −4.75%) and the higher return on invested capital (0.00% vs −0.64%). Both pay a dividend; Marriott Vacations Worldwide Corporation yields more (2.99% vs 2.17%). Across the 20 metrics below, Red Rock Resorts, Inc. leads on 11 and Marriott Vacations Worldwide Corporation on 9.

Valuation

Metric RRR VAC Resorts & Casinos median
P/E 25.61 n/m 16.84
P/S 1.38 0.71 0.57
P/B 9.55 1.76 2.02
Price to free cash flow 17.80 22.34 10.86
EV/EBITDA 9.22 n/m 8.92
EV/Sales 3.11 1.63 1.79
Earnings yield 3.91% (6.74%) 2.61%
Free cash flow yield 5.62% 4.48% 7.35%

Profitability

Metric RRR VAC Resorts & Casinos median
Gross margin 58.88% 90.94% 47.52%
Operating margin 22.29% (1.35%) 12.21%
Net margin 5.79% (4.75%) 3.87%
Free cash flow margin 29.02% 3.17% 5.15%
Return on equity 38.03% (10.91%) 19.64%
Return on assets 2.74% (2.55%) 1.70%
Return on invested capital 0.00% (0.64%) 6.38%

Growth

Metric RRR VAC Resorts & Casinos median
Revenue growth (TTM) 1.14% 4.59% 3.08%
EPS growth (last fiscal year) 23.32% (257.58%) 3.45%
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 0.06 2.55 0.06
Current ratio 0.84 3.78 0.91
Net debt to EBITDA 4.13 (1,236.75) 4.00

Dividend

Metric RRR VAC Resorts & Casinos median
Dividend yield 2.17% 2.99% 1.98%
Payout ratio 0.56 — 0.49

Size

Metric RRR VAC Resorts & Casinos median
Market cap 5.04b 3.69b 3.32b

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