Contrasting Red Rock Resorts (NASDAQ:RRR) and Trans World (OTCMKTS:TWOC)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Red Rock Resorts and Trans World, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Rock Resorts	0	4	10	0	2.71
Trans World	0	0	0	0	0.00

Red Rock Resorts presently has a consensus price target of $64.55, indicating a potential upside of 16.76%. Given Red Rock Resorts’ stronger consensus rating and higher probable upside, equities analysts clearly believe Red Rock Resorts is more favorable than Trans World.

Insider & Institutional Ownership

47.8% of Red Rock Resorts shares are held by institutional investors. 53.3% of Red Rock Resorts shares are held by company insiders. Comparatively, 42.5% of Trans World shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Red Rock Resorts and Trans World”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Rock Resorts	$1.94 billion	3.02	$154.05 million	$3.14	17.61
Trans World	N/A	N/A	N/A	N/A	N/A

Red Rock Resorts has higher revenue and earnings than Trans World.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red Rock Resorts	9.52%	59.86%	4.80%
Trans World	N/A	N/A	N/A

Summary

Red Rock Resorts beats Trans World on 9 of the 9 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 Trans World

Trans World Corporation, together with its subsidiaries, acquires, develops, and manages casino operations and small-to-mid-size four-star hotels in Europe. It operates in two segments, Casino and Hotel. The company owns and operates three full-service casinos in the Czech Republic under the American Chance Casinos brand; and five hotels. As of March 26, 2018, its casino portfolio included the Ceska casino consisting of 13 gaming tables, including 7 card tables, 6 roulette tables, and 118 video slot machines; Route 59 casino comprising 12 card tables, 12 roulette tables, and 214 video slot machines; and Route 55 casino consisting of 12 card tables, 10 roulette tables, and 192 video slot machines. The company also owns and operates the Hotel Savannah, a 79-room four-star deluxe hotel, as well as a full-service spa in Hate, Czech Republic; Hotel Columbus, a 117-room four-star hotel located in Seligenstadt, Germany; Hotel Auefeld, a 93-room four-star hotel located in Hannoversch Münden, Germany; Hotel Kranichhöhe, a 107-room four-star hotel located in Much, Germany; and Hotel Donauwelle, a 176-room four-star hotel located in Linz, Austria. Trans World Corporation was founded in 1993 and is headquartered in New York, New York. As of April 30, 2018, Trans World Corporation operates as a subsidiary of FEC Overseas Investment (UK) Limited.