Red Rock Resorts (NASDAQ:RRR – Get Free Report) and Sharplink Gaming (NASDAQ:SBET – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Volatility & Risk
Red Rock Resorts has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Sharplink Gaming has a beta of 10.69, meaning that its stock price is 969% more volatile than the S&P 500.
Profitability
This table compares Red Rock Resorts and Sharplink Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Red Rock Resorts | 9.21% | 61.67% | 4.51% |
| Sharplink Gaming | -3,604.61% | -38.53% | -38.41% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Rock Resorts | 1 | 3 | 12 | 0 | 2.69 |
| Sharplink Gaming | 1 | 1 | 7 | 1 | 2.80 |
Red Rock Resorts currently has a consensus price target of $67.67, suggesting a potential upside of 17.66%. Sharplink Gaming has a consensus price target of $22.11, suggesting a potential upside of 268.52%. Given Sharplink Gaming’s stronger consensus rating and higher probable upside, analysts clearly believe Sharplink Gaming is more favorable than Red Rock Resorts.
Valuation and Earnings
This table compares Red Rock Resorts and Sharplink Gaming”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Red Rock Resorts | $2.01 billion | 3.00 | $188.07 million | $3.11 | 18.49 |
| Sharplink Gaming | $51.38 million | 23.03 | -$734.59 million | ($0.60) | -10.00 |
Red Rock Resorts has higher revenue and earnings than Sharplink Gaming. Sharplink 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.
Institutional & Insider Ownership
47.8% of Red Rock Resorts shares are held by institutional investors. Comparatively, 13.8% of Sharplink Gaming shares are held by institutional investors. 53.8% of Red Rock Resorts shares are held by company insiders. Comparatively, 3.6% of Sharplink Gaming shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Red Rock Resorts beats Sharplink Gaming on 10 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 Sharplink Gaming
SharpLink Gaming, Inc. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers. It also provides iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partners worldwide; and development, hosting, operations, maintenance, and service of free-to-play games and contests. In addition, the company owns and operates various real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States, where fantasy sports play is legal and in which SportsHub has elected to operate based on the financial viability. SharpLink Gaming, Inc. was founded in 2019 and is headquartered in Minneapolis, Minnesota.
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