Red Rock Resorts (NASDAQ:RRR – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Insider & Institutional Ownership
47.8% of Red Rock Resorts shares are owned by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. 53.3% of Red Rock Resorts shares are owned by company insiders. Comparatively, 34.6% of Allied Gaming & Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Red Rock Resorts and Allied Gaming & Entertainment”s gross 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 | 3.46 | $154.05 million | $3.14 | 20.17 |
| Allied Gaming & Entertainment | $9.08 million | 1.18 | -$16.76 million | ($0.54) | -0.52 |
Red Rock Resorts has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & 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.
Analyst Ratings
This is a summary of recent recommendations for Red Rock Resorts and Allied Gaming & Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Rock Resorts | 0 | 4 | 11 | 0 | 2.73 |
| Allied Gaming & Entertainment | 1 | 0 | 0 | 0 | 1.00 |
Red Rock Resorts currently has a consensus price target of $66.50, suggesting a potential upside of 4.99%. Given Red Rock Resorts’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Red Rock Resorts is more favorable than Allied Gaming & Entertainment.
Profitability
This table compares Red Rock Resorts and Allied Gaming & 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% |
| Allied Gaming & Entertainment | -280.09% | -19.56% | -11.82% |
Risk & Volatility
Red Rock Resorts has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.
Summary
Red Rock Resorts beats Allied Gaming & Entertainment on 13 of the 14 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 Allied Gaming & Entertainment
Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.
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