Penn National Gaming Inc (PENN)vsRed Rock Resorts Inc (RRR)
PENN
Penn National Gaming Inc
$15.94
-4.78%
CONSUMER CYCLICAL · Cap: $2.13B
RRR
Red Rock Resorts Inc
$52.56
-3.52%
CONSUMER CYCLICAL · Cap: $5.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Penn National Gaming Inc generates 250% more annual revenue ($7.07B vs $2.02B). RRR leads profitability with a 9.2% profit margin vs -13.5%. PENN appears more attractively valued with a PEG of 1.01. PENN earns a higher WallStSmart Score of 59/100 (C).
PENN
Buy59
out of 100
Grade: C
RRR
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.6%
Fair Value
$76.92
Current Price
$15.94
$60.98 discount
Margin of Safety
-36.0%
Fair Value
$47.70
Current Price
$52.56
$4.86 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 208.9% YoY
Every $100 of equity generates 114 in profit
Attractively priced relative to earnings
Strong operational efficiency at 28.3%
Areas to Watch
ROE of -40.1% — below average capital efficiency
Currently unprofitable
Expensive relative to growth rate
Trading at 14.7x book value
1.9% revenue growth
Earnings declined 2.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : PENN
The strongest argument for PENN centers on Price/Book, EPS Growth. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bull Case : RRR
The strongest argument for RRR centers on Return on Equity, P/E Ratio, Operating Margin.
Bear Case : PENN
The primary concerns for PENN are Return on Equity, Profit Margin.
Bear Case : RRR
The primary concerns for RRR are PEG Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
PENN profiles as a turnaround stock while RRR is a value play — different risk/reward profiles.
PENN carries more volatility with a beta of 1.44 — expect wider price swings.
PENN is growing revenue faster at 6.4% — sustainability is the question.
PENN generates stronger free cash flow (28M), providing more financial flexibility.
Bottom Line
PENN scores higher overall (59/100 vs 53/100). 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.
Penn National Gaming Inc
CONSUMER CYCLICAL · RESORTS & CASINOS · USA
Penn National Gaming, Inc. is an American operator of casinos and racetracks, based in Wyomissing, Pennsylvania.
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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