Red Rock Resorts (NASDAQ:RRR) versus Wynn Macau (OTCMKTS:WYNMY) Head to Head Survey

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

Dividends

Red Rock Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Wynn Macau pays an annual dividend of $14.03 per share and has a dividend yield of 148.5%. Red Rock Resorts pays out 33.9% of its earnings in the form of a dividend. Wynn Macau pays out 95.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Red Rock Resorts has raised its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Red Rock Resorts and Wynn Macau’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Rock Resorts	$1.72 billion	3.61	$176.00 million	$2.95	20.08
Wynn Macau	N/A	N/A	N/A	$14.76	0.64

Red Rock Resorts has higher revenue and earnings than Wynn Macau. Wynn Macau 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.

Profitability

This table compares Red Rock Resorts and Wynn Macau’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Rock Resorts	10.21%	114.32%	4.69%
Wynn Macau	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Red Rock Resorts and Wynn Macau, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Rock Resorts	0	3	9	0	2.75
Wynn Macau	0	0	0	0	N/A

Red Rock Resorts currently has a consensus price target of $61.67, suggesting a potential upside of 4.11%. Given Red Rock Resorts’ higher probable upside, analysts clearly believe Red Rock Resorts is more favorable than Wynn Macau.

Institutional & Insider Ownership

47.8% of Red Rock Resorts shares are owned by institutional investors. Comparatively, 0.0% of Wynn Macau shares are owned by institutional investors. 54.2% of Red Rock Resorts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Red Rock Resorts beats Wynn Macau on 11 of the 13 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 Wynn Macau

Wynn Macau, Limited, through its subsidiaries, engages in the development, ownership, and operation of integrated destination casino resorts in Macau. The company's Wynn Palace resort features approximately 468,000 square feet of casino space providing 24-hour gaming and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; and food and beverage outlets. Its Wynn Palace resort also consists of approximately 107,000 square feet of retail shopping; 37,000 square feet of meeting and convention space; recreation and leisure facilities consisting of a cable car ride, health club, spa, salon, and pool; and public entertainment attractions, including a lake, animated floral art displays, and fine art displays. In addition, the company's Wynn Macau resort features approximately 294,000 square feet of casino space offering 24-hour gaming and various games, including private gaming salons, sky casinos, and a poker pit; hotel towers with rooms and suites; food and beverage outlets; and recreation and leisure facilities, such as health clubs and spas, a salon, and a pool. Further, its Wynn Macau resort includes approximately 64,300 square feet of brand-name retail shopping and 31,000 square feet of meeting and convention space. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited operates as a subsidiary of WM Cayman Holdings Limited I.