Head to Head Survey: Red Rock Resorts (NASDAQ:RRR) vs. Viking (NYSE:VIK)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viking	19.33%	117.98%	10.80%
Red Rock Resorts	8.43%	56.19%	4.01%

Volatility and Risk

Viking has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Viking and Red Rock Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viking	1	2	16	0	2.79
Red Rock Resorts	0	4	16	1	2.86

Viking presently has a consensus target price of $107.33, suggesting a potential upside of 26.19%. Red Rock Resorts has a consensus target price of $71.94, suggesting a potential upside of 28.70%. Given Red Rock Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Red Rock Resorts is more favorable than Viking.

Institutional & Insider Ownership

98.8% of Viking shares are held by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are held by institutional investors. 54.3% of Red Rock Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Viking and Red Rock Resorts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viking	$6.50 billion	5.83	$1.15 billion	$3.01	28.26
Red Rock Resorts	$2.01 billion	2.92	$188.07 million	$2.83	19.75

Viking has higher revenue and earnings than Red Rock Resorts. Red Rock Resorts is trading at a lower price-to-earnings ratio than Viking, indicating that it is currently the more affordable of the two stocks.

Summary

Viking beats Red Rock Resorts on 10 of the 14 factors compared between the two stocks.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.

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.