Red Rock Resorts (RRR) Competitors

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

Which has more risk & volatility, RRR or CHDN?

Red Rock Resorts has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Churchill Downs has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Do institutionals & insiders have more ownership in RRR or CHDN?

47.8% of Red Rock Resorts shares are owned by institutional investors. Comparatively, 82.6% of Churchill Downs shares are owned by institutional investors. 53.3% of Red Rock Resorts shares are owned by company insiders. Comparatively, 5.3% of Churchill Downs shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Is RRR or CHDN a better dividend stock?

Red Rock Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Churchill Downs pays an annual dividend of $0.41 per share and has a dividend yield of 0.4%. Red Rock Resorts pays out 38.8% of its earnings in the form of a dividend. Churchill Downs pays out 7.3% 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.

Do analysts recommend RRR or CHDN?

Red Rock Resorts presently has a consensus target price of $52.55, indicating a potential downside of 6.67%. Churchill Downs has a consensus target price of $139.09, indicating a potential upside of 30.13%. Given Churchill Downs' stronger consensus rating and higher probable upside, analysts plainly believe Churchill Downs is more favorable than Red Rock Resorts.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Rock Resorts	0 Sell rating(s)	5 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.55
Churchill Downs	0 Sell rating(s)	0 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the media favor RRR or CHDN?

In the previous week, Churchill Downs had 8 more articles in the media than Red Rock Resorts. MarketBeat recorded 14 mentions for Churchill Downs and 6 mentions for Red Rock Resorts. Churchill Downs' average media sentiment score of 1.28 beat Red Rock Resorts' score of 0.98 indicating that Churchill Downs is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Red Rock Resorts	1 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Churchill Downs	9 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings & valuation, RRR or CHDN?

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
Red Rock Resorts	$1.94B	3.08	$154.05M	$2.58	21.82
Churchill Downs	$2.73B	2.82	$426.80M	$5.62	19.02

Is RRR or CHDN more profitable?

Churchill Downs has a net margin of 15.19% compared to Red Rock Resorts' net margin of 8.01%. Red Rock Resorts' return on equity of 56.45% beat Churchill Downs' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Red Rock Resorts	8.01%	56.45%	3.99%
Churchill Downs	15.19%	40.73%	6.02%

Summary

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