Red Rock Resorts (RRR) and Isle of Capri Casinos (NASDAQ:ISLE) Critical Survey
Red Rock Resorts (NASDAQ: RRR) and Isle of Capri Casinos (NASDAQ:ISLE) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitabiliy, valuation, analyst recommendations, earnings, risk and dividends.
Institutional & Insider Ownership
58.4% of Red Rock Resorts shares are held by institutional investors. Comparatively, 53.9% of Isle of Capri Casinos shares are held by institutional investors. 40.9% of Red Rock Resorts shares are held by insiders. Comparatively, 38.2% of Isle of Capri Casinos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Red Rock Resorts has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Isle of Capri Casinos has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
Red Rock Resorts pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Isle of Capri Casinos does not pay a dividend. Red Rock Resorts pays out 45.5% of its earnings in the form of a dividend.
This table compares Red Rock Resorts and Isle of Capri Casinos’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Red Rock Resorts||3.58%||10.00%||1.83%|
|Isle of Capri Casinos||3.12%||21.43%||2.01%|
This is a summary of current ratings and target prices for Red Rock Resorts and Isle of Capri Casinos, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Red Rock Resorts||0||2||10||0||2.83|
|Isle of Capri Casinos||0||2||1||0||2.33|
Red Rock Resorts presently has a consensus target price of $26.15, suggesting a potential upside of 9.23%. Isle of Capri Casinos has a consensus target price of $23.00, suggesting a potential downside of 0.26%. Given Red Rock Resorts’ stronger consensus rating and higher probable upside, equities analysts clearly believe Red Rock Resorts is more favorable than Isle of Capri Casinos.
Valuation & Earnings
This table compares Red Rock Resorts and Isle of Capri Casinos’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Red Rock Resorts||$1.51 billion||1.04||$493.64 million||$0.88||27.20|
|Isle of Capri Casinos||N/A||N/A||N/A||$1.58||14.59|
Red Rock Resorts has higher revenue and earnings than Isle of Capri Casinos. Isle of Capri Casinos 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.
Red Rock Resorts beats Isle of Capri Casinos on 8 of the 13 factors compared between the two stocks.
Red Rock Resorts Company Profile
Red Rock Resorts, Inc. is a gaming, development and management company. The Company’s segments include Las Vegas operations, Native American management, and Corporate and other. The Las Vegas operations segment includes all of its Las Vegas area casino properties and the Native American management segment includes its Native American management arrangements. It provides gaming and entertainment for residents of the Las Vegas regional market and visitors. Its Las Vegas portfolio includes approximately 10 gaming and entertainment facilities and over 10 smaller casinos, offering approximately 20,300 slot machines, over 350 table games and approximately 4,750 hotel rooms. The Company offers a range of gaming and non-gaming entertainment options. It also controls over seven gaming-entitled development sites consisting of approximately 398 acres in Las Vegas and Reno, Nevada. The Company manages and owns interest in Station Casinos LLC, which is the provider of gaming and entertainment.
Isle of Capri Casinos Company Profile
Isle of Capri Casinos, Inc. is a developer, owner and operator of branded gaming facilities and related dining, lodging and entertainment facilities in regional markets in the United States. The Company owns or operates over 10 gaming and entertainment facilities in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri and Pennsylvania. Collectively, these properties feature over 12,000 slot machines and 300 table games (including approximately 80 poker tables), 2,200 hotel rooms and 40 restaurants. The Company also operates a harness racing track at its casino in Florida. The Company operates under two brands: Isle and Lady Luck. The Company’s casino properties include Isle Casino Hotel-Black Hawk, Lady Luck Casino-Black Hawk, Pompano Park, Bettendorf, Marquette, Waterloo, Lake Charles, Lula, Vicksburg, Boonville, Cape Girardeau, Caruthersville, Kansas City and Nemacolin.
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