Red Rock Resorts (RRR) Competitors

Churchill Downs (NASDAQ:CHDN) and Red Rock Resorts (NASDAQ:RRR) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, media sentiment, valuation, risk, analyst recommendations and dividends.

Do insiders and institutionals hold more shares of CHDN or RRR?

82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are held by institutional investors. 5.3% of Churchill Downs shares are held by company insiders. Comparatively, 53.8% of Red Rock Resorts 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.

Is CHDN or RRR a better dividend stock?

Churchill Downs pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Red Rock Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Churchill Downs pays out 6.9% of its earnings in the form of a dividend. Red Rock Resorts pays out 34.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Churchill Downs has increased its dividend for 14 consecutive years.

Which has more volatility & risk, CHDN or RRR?

Churchill Downs has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Is CHDN or RRR more profitable?

Churchill Downs has a net margin of 15.22% compared to Red Rock Resorts' net margin of 8.89%. Red Rock Resorts' return on equity of 59.97% beat Churchill Downs' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Churchill Downs	15.22%	41.46%	6.10%
Red Rock Resorts	8.89%	59.97%	4.50%

Does the media favor CHDN or RRR?

In the previous week, Churchill Downs had 2 more articles in the media than Red Rock Resorts. MarketBeat recorded 8 mentions for Churchill Downs and 6 mentions for Red Rock Resorts. Churchill Downs' average media sentiment score of 1.76 beat Red Rock Resorts' score of 1.70 indicating that Churchill Downs is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Churchill Downs	7 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Red Rock Resorts	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Which has higher earnings and valuation, CHDN or RRR?

Churchill Downs has higher revenue and earnings than Red Rock Resorts. Churchill Downs 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.83B	2.39	$426.80M	$5.82	16.55
Red Rock Resorts	$1.99B	3.26	$154.05M	$2.94	20.86

Do analysts recommend CHDN or RRR?

Churchill Downs presently has a consensus target price of $136.50, suggesting a potential upside of 41.72%. Red Rock Resorts has a consensus target price of $60.73, suggesting a potential downside of 1.00%. Given Churchill Downs' stronger consensus rating and higher probable upside, research analysts clearly believe Churchill Downs is more favorable than Red Rock Resorts.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0 Sell rating(s)	0 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	3.00
Red Rock Resorts	0 Sell rating(s)	4 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.67

Summary

Churchill Downs beats Red Rock Resorts on 13 of the 19 factors compared between the two stocks.