Red Rock Resorts (NASDAQ:RRR) versus Simplicity Esports and Gaming (OTCMKTS:WINR) Head-To-Head Review

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

Valuation and Earnings

This table compares Red Rock Resorts and Simplicity Esports and Gaming”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Rock Resorts	$2.00 billion	3.28	$154.05 million	$3.14	19.70
Simplicity Esports and Gaming	N/A	N/A	N/A	($0.04)	N/A

Red Rock Resorts has higher revenue and earnings than Simplicity Esports and Gaming. Simplicity Esports and Gaming 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.

Volatility & Risk

Red Rock Resorts has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Simplicity Esports and Gaming has a beta of -1, indicating that its share price is 200% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Red Rock Resorts and Simplicity Esports and Gaming, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Rock Resorts	0	4	9	1	2.79
Simplicity Esports and Gaming	0	0	0	0	0.00

Red Rock Resorts currently has a consensus price target of $65.08, indicating a potential upside of 5.18%. Given Red Rock Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Red Rock Resorts is more favorable than Simplicity Esports and Gaming.

Insider and Institutional 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, 15.4% of Simplicity Esports and Gaming shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Red Rock Resorts and Simplicity Esports and Gaming’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%
Simplicity Esports and Gaming	N/A	N/A	N/A

Summary

Red Rock Resorts beats Simplicity Esports and Gaming on 12 of the 12 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 Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.