Red Rock Resorts (NASDAQ:RRR – Get Free Report) and Flutter Entertainment (NYSE:FLUT – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares Red Rock Resorts and Flutter Entertainment’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% |
| Flutter Entertainment | 2.96% | 12.15% | 4.68% |
Earnings & Valuation
This table compares Red Rock Resorts and Flutter Entertainment”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 | 3.20 | $154.05 million | $3.14 | 18.65 |
| Flutter Entertainment | $15.44 billion | 2.36 | $43.00 million | ($1.30) | -160.00 |
Red Rock Resorts has higher earnings, but lower revenue than Flutter Entertainment. Flutter Entertainment 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.
Institutional & Insider Ownership
47.8% of Red Rock Resorts shares are held by institutional investors. 53.8% of Red Rock Resorts shares are held by company insiders. Comparatively, 0.1% of Flutter Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Red Rock Resorts and Flutter Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Rock Resorts | 0 | 4 | 9 | 1 | 2.79 |
| Flutter Entertainment | 2 | 3 | 16 | 3 | 2.83 |
Red Rock Resorts currently has a consensus price target of $64.42, suggesting a potential upside of 9.99%. Flutter Entertainment has a consensus price target of $310.84, suggesting a potential upside of 49.44%. Given Flutter Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Flutter Entertainment is more favorable than Red Rock Resorts.
Risk & Volatility
Red Rock Resorts has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.
Summary
Red Rock Resorts beats Flutter Entertainment on 8 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 Flutter Entertainment
Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.
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