Red Rock Resorts (NASDAQ:RRR – Get Free Report) and Galaxy Gaming (OTCMKTS:GLXZ – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Insider and Institutional Ownership
47.8% of Red Rock Resorts shares are held by institutional investors. Comparatively, 0.4% of Galaxy Gaming shares are held by institutional investors. 53.8% of Red Rock Resorts shares are held by insiders. Comparatively, 21.9% of Galaxy Gaming shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Red Rock Resorts has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Galaxy Gaming has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Red Rock Resorts | 8.89% | 59.97% | 4.50% |
| Galaxy Gaming | -13.60% | N/A | -12.08% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Red Rock Resorts and Galaxy Gaming, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Rock Resorts | 0 | 4 | 8 | 1 | 2.77 |
| Galaxy Gaming | 0 | 0 | 0 | 0 | 0.00 |
Red Rock Resorts presently has a consensus target price of $60.82, indicating a potential downside of 1.48%. Given Red Rock Resorts’ stronger consensus rating and higher possible upside, analysts clearly believe Red Rock Resorts is more favorable than Galaxy Gaming.
Valuation and Earnings
This table compares Red Rock Resorts and Galaxy 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 | $1.99 billion | 3.28 | $154.05 million | $2.94 | 21.00 |
| Galaxy Gaming | $31.74 million | 2.26 | -$2.63 million | ($0.16) | -17.74 |
Red Rock Resorts has higher revenue and earnings than Galaxy Gaming. Galaxy 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.
Summary
Red Rock Resorts beats Galaxy Gaming on 15 of the 15 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 Galaxy Gaming
Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.
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