Red Rock Resorts (NASDAQ:RRR – Get Free Report) and Bragg Gaming Group (NASDAQ:BRAG – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Risk and Volatility
Red Rock Resorts has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Bragg Gaming Group has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
Institutional and Insider Ownership
47.8% of Red Rock Resorts shares are held by institutional investors. Comparatively, 4.0% of Bragg Gaming Group shares are held by institutional investors. 53.3% of Red Rock Resorts shares are held by insiders. Comparatively, 26.4% of Bragg Gaming Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Rock Resorts | 0 | 5 | 8 | 1 | 2.71 |
| Bragg Gaming Group | 1 | 1 | 3 | 0 | 2.40 |
Red Rock Resorts presently has a consensus target price of $60.82, indicating a potential upside of 5.62%. Bragg Gaming Group has a consensus target price of $7.00, indicating a potential upside of 145.61%. Given Bragg Gaming Group’s higher possible upside, analysts plainly believe Bragg Gaming Group is more favorable than Red Rock Resorts.
Earnings & Valuation
This table compares Red Rock Resorts and Bragg Gaming Group”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 | 3.13 | $154.05 million | $2.94 | 19.59 |
| Bragg Gaming Group | $110.38 million | 0.65 | -$5.57 million | ($0.24) | -11.88 |
Red Rock Resorts has higher revenue and earnings than Bragg Gaming Group. Bragg Gaming Group 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 Bragg Gaming Group’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% |
| Bragg Gaming Group | -5.04% | -7.51% | -5.06% |
Summary
Red Rock Resorts beats Bragg Gaming Group on 14 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 Bragg Gaming Group
Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
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