Red Rock Resorts (NASDAQ:RRR) & Galaxy Gaming (OTCMKTS:GLXZ) Head-To-Head Contrast

Red Rock Resorts (NASDAQ:RRR) and Galaxy Gaming (OTCMKTS:GLXZ) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Red Rock Resorts and Galaxy Gaming, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Rock Resorts	0	4	8	1	2.77
Galaxy Gaming	0	0	0	0	0.00

Red Rock Resorts presently has a consensus price target of $60.82, indicating a potential upside of 1.40%. Given Red Rock Resorts’ stronger consensus rating and higher probable upside, equities analysts plainly believe Red Rock Resorts is more favorable than Galaxy Gaming.

Volatility and Risk

Red Rock Resorts has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

47.8% of Red Rock Resorts shares are owned by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are owned by institutional investors. 53.8% of Red Rock Resorts shares are owned by insiders. Comparatively, 21.9% of Galaxy Gaming shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Red Rock Resorts and Galaxy Gaming”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Rock Resorts	$1.94 billion	3.26	$154.05 million	$2.94	20.40
Galaxy Gaming	$31.74 million	2.26	-$2.63 million	($0.16)	-17.75

Red Rock Resorts has higher revenue and earnings than Galaxy Gaming. Galaxy Gaming is trading at a lower price-to-earnings ratio than Red Rock Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Red Rock Resorts and Galaxy Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Rock Resorts	8.89%	59.97%	4.50%
Galaxy Gaming	-13.60%	N/A	-12.08%

Summary

Red Rock Resorts beats Galaxy Gaming on 15 of the 15 factors compared between the two stocks.

About Red Rock Resorts

Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was founded in 1976 and is based in Las Vegas, Nevada.

About Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.