WallStSmart

MGM Resorts International (MGM)vsRed Rock Resorts Inc (RRR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MGM Resorts International generates 772% more annual revenue ($17.54B vs $2.01B). RRR leads profitability with a 9.3% profit margin vs 1.2%. MGM appears more attractively valued with a PEG of 0.96. MGM earns a higher WallStSmart Score of 65/100 (C+).

MGM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 5.0Value: 8.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.63

RRR

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 8.5Value: 4.7Quality: 4.3
Piotroski: 4/9Altman Z: 1.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MGMFair Value (-2.2%)

Margin of Safety

-2.2%

Fair Value

$35.57

Current Price

$37.49

$1.92 premium

UndervaluedFair: $35.57Overvalued
RRRSignificantly Overvalued (-205.7%)

Margin of Safety

-205.7%

Fair Value

$21.22

Current Price

$58.75

$37.53 premium

UndervaluedFair: $21.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MGM2 strengths · Avg: 9.0/10
EPS GrowthGrowth
115.7%10/10

Earnings expanding 115.7% YoY

PEG RatioValuation
0.968/10

Growing faster than its price suggests

RRR2 strengths · Avg: 10.0/10
Return on EquityProfitability
111.3%10/10

Every $100 of equity generates 111 in profit

Operating MarginProfitability
31.8%10/10

Strong operational efficiency at 31.8%

Areas to Watch

MGM4 concerns · Avg: 2.0/10
Profit MarginProfitability
1.2%3/10

1.2% margin — thin

P/E RatioValuation
48.8x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.632/10

Distress zone — elevated risk

Debt/EquityHealth
23.111/10

Elevated debt levels

RRR4 concerns · Avg: 3.0/10
Price/BookValuation
16.5x4/10

Trading at 16.5x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

PEG RatioValuation
9.372/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.8%2/10

Earnings declined 1.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : MGM

The strongest argument for MGM centers on EPS Growth, PEG Ratio. PEG of 0.96 suggests the stock is reasonably priced for its growth.

Bull Case : RRR

The strongest argument for RRR centers on Return on Equity, Operating Margin.

Bear Case : MGM

The primary concerns for MGM are Profit Margin, P/E Ratio, Altman Z-Score. A P/E of 48.8x leaves little room for execution misses. Debt-to-equity of 23.11 is elevated, increasing financial risk.

Bear Case : RRR

The primary concerns for RRR are Price/Book, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

RRR carries more volatility with a beta of 1.45 — expect wider price swings.

MGM is growing revenue faster at 6.0% — sustainability is the question.

MGM generates stronger free cash flow (536M), providing more financial flexibility.

Monitor RESORTS & CASINOS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MGM scores higher overall (65/100 vs 51/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

MGM Resorts International

CONSUMER CYCLICAL · RESORTS & CASINOS · USA

MGM Resorts International is an American global hospitality and entertainment company operating destination resorts globally.

Visit Website →

Red Rock Resorts Inc

CONSUMER CYCLICAL · RESORTS & CASINOS · USA

Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, is involved in the casino, gaming and entertainment businesses in the United States. The company is headquartered in Las Vegas, Nevada.

Want to dig deeper into these stocks?