Bragg Gaming Group (NASDAQ:BRAG – Get Free Report) and Red Rock Resorts (NASDAQ:RRR – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Risk & Volatility
Bragg Gaming Group has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
Insider and Institutional Ownership
4.0% of Bragg Gaming Group shares are owned by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are owned by institutional investors. 26.4% of Bragg Gaming Group shares are owned by insiders. Comparatively, 53.8% of Red Rock Resorts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bragg Gaming Group | $110.38 million | 0.66 | -$5.57 million | ($0.24) | -12.08 |
| Red Rock Resorts | $1.94 billion | 3.29 | $154.05 million | $2.94 | 20.54 |
Red Rock Resorts has higher revenue and earnings than Bragg Gaming Group. Bragg Gaming Group 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 Bragg Gaming Group and Red Rock Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bragg Gaming Group | -5.04% | -7.51% | -5.06% |
| Red Rock Resorts | 8.89% | 59.97% | 4.50% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Bragg Gaming Group and Red Rock Resorts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bragg Gaming Group | 1 | 1 | 3 | 0 | 2.40 |
| Red Rock Resorts | 0 | 5 | 8 | 1 | 2.71 |
Bragg Gaming Group currently has a consensus price target of $7.00, suggesting a potential upside of 141.38%. Red Rock Resorts has a consensus price target of $60.82, suggesting a potential upside of 0.69%. Given Bragg Gaming Group’s higher possible upside, equities research analysts plainly believe Bragg Gaming Group is more favorable than Red Rock Resorts.
Summary
Red Rock Resorts beats Bragg Gaming Group on 14 of the 15 factors compared between the two stocks.
About Bragg Gaming Group
Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
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.
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