WallStSmart

Penn National Gaming Inc (PENN)vsRed Rock Resorts Inc (RRR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penn National Gaming Inc generates 246% more annual revenue ($6.96B vs $2.01B). RRR leads profitability with a 9.3% profit margin vs -12.1%. PENN appears more attractively valued with a PEG of 1.01. PENN earns a higher WallStSmart Score of 59/100 (C).

PENN

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 3.0Value: 6.7Quality: 5.0

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

Intrinsic value data unavailable for PENN.

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

PENN1 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

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

PENN4 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Market CapQuality
$1.83B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Return on EquityProfitability
-36.1%2/10

ROE of -36.1% — below average capital efficiency

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 : PENN

The strongest argument for PENN centers on Price/Book. 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, Operating Margin.

Bear Case : PENN

The primary concerns for PENN are EPS Growth, Market Cap, Operating Margin.

Bear Case : RRR

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

Key Dynamics to Monitor

PENN profiles as a turnaround stock while RRR is a value play — different risk/reward profiles.

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

PENN is growing revenue faster at 8.2% — sustainability is the question.

PENN generates stronger free cash flow (-83M), providing more financial flexibility.

Bottom Line

PENN scores higher overall (59/100 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.

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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