Reviewing PLAYSTUDIOS (NASDAQ:MYPS) and Red Rock Resorts (NASDAQ:RRR)

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

Insider and Institutional Ownership

47.8% of Red Rock Resorts shares are held by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are held by institutional investors. 53.3% of Red Rock Resorts shares are held by company insiders. Comparatively, 14.7% of PLAYSTUDIOS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Red Rock Resorts and PLAYSTUDIOS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Rock Resorts	0	4	11	0	2.73
PLAYSTUDIOS	2	1	2	0	2.00

Red Rock Resorts currently has a consensus price target of $66.50, suggesting a potential upside of 4.99%. PLAYSTUDIOS has a consensus price target of $2.00, suggesting a potential upside of 238.93%. Given PLAYSTUDIOS’s higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than Red Rock Resorts.

Valuation and Earnings

This table compares Red Rock Resorts and PLAYSTUDIOS”s 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
PLAYSTUDIOS	$289.43 million	0.26	-$28.69 million	($0.29)	-2.03

Red Rock Resorts has higher revenue and earnings than PLAYSTUDIOS. PLAYSTUDIOS 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.

Risk & Volatility

Red Rock Resorts has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Red Rock Resorts and PLAYSTUDIOS’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%
PLAYSTUDIOS	-15.10%	-8.71%	-6.77%

Summary

Red Rock Resorts beats PLAYSTUDIOS 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 PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.