WallStSmart

Melco Resorts & Entertainment Ltd (MLCO)vsRed Rock Resorts Inc (RRR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Melco Resorts & Entertainment Ltd generates 160% more annual revenue ($5.22B vs $2.00B). RRR leads profitability with a 8.4% profit margin vs 4.5%. MLCO appears more attractively valued with a PEG of 0.39. RRR earns a higher WallStSmart Score of 51/100 (C-).

MLCO

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 4.5Value: 8.3Quality: 6.0
Piotroski: 6/9Altman Z: 0.26

RRR

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.06

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MLCO4 strengths · Avg: 9.5/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

P/E RatioValuation
8.7x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-4.4710/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
35.7%8/10

Earnings expanding 35.7% YoY

RRR2 strengths · Avg: 9.0/10
Return on EquityProfitability
130.5%10/10

Every $100 of equity generates 130 in profit

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

Areas to Watch

MLCO4 concerns · Avg: 2.5/10
Market CapQuality
$1.95B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.5%3/10

4.5% margin — thin

Return on EquityProfitability
-2157.0%2/10

ROE of -2157.0% — below average capital efficiency

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

RRR4 concerns · Avg: 3.0/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

Price/BookValuation
17.3x4/10

Trading at 17.3x book value

Revenue GrowthGrowth
-3.0%2/10

Revenue declined 3.0%

EPS GrowthGrowth
-29.3%2/10

Earnings declined 29.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : MLCO

The strongest argument for MLCO centers on PEG Ratio, P/E Ratio, Debt/Equity. PEG of 0.39 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 : MLCO

The primary concerns for MLCO are Market Cap, Profit Margin, Return on Equity. Thin 4.5% margins leave little buffer for downturns.

Bear Case : RRR

The primary concerns for RRR are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 21.21 is elevated, increasing financial risk.

Key Dynamics to Monitor

RRR carries more volatility with a beta of 1.31 — expect wider price swings.

RRR is growing revenue faster at -3.0% — sustainability is the question.

RRR generates stronger free cash flow (18M), providing more financial flexibility.

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

Bottom Line

RRR scores higher overall (51/100 vs 48/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Melco Resorts & Entertainment Ltd

CONSUMER CYCLICAL · RESORTS & CASINOS · USA

Melco Resorts & Entertainment Limited develops, owns and operates casino gaming facilities and resorts in Asia and Europe.

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.

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