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

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Wynn Macau and Red Rock Resorts, as provided by MarketBeat.com.

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

Red Rock Resorts has a consensus target price of $61.67, indicating a potential upside of 4.64%. Given Red Rock Resorts’ higher probable upside, analysts clearly believe Red Rock Resorts is more favorable than Wynn Macau.

Dividends

Wynn Macau pays an annual dividend of $14.03 per share and has a dividend yield of 148.4%. Red Rock Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. 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 pays out 33.9% of its earnings in the form of a dividend. Red Rock Resorts has raised its dividend for 1 consecutive years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	N/A	N/A	N/A	$14.76	0.64
Red Rock Resorts	$1.72 billion	3.60	$176.00 million	$2.95	19.98

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 Wynn Macau and Red Rock Resorts’ net margins, return on equity and return on assets.

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

Insider and Institutional Ownership

0.0% of Wynn Macau shares are owned by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are owned by institutional investors. 54.2% 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.

Summary

Red Rock Resorts beats Wynn Macau on 11 of the 13 factors compared between the two stocks.

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.

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.