WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Melco Resorts & Entertainment Ltd generates 157% more annual revenue ($5.16B vs $2.01B). RRR leads profitability with a 9.3% profit margin vs 3.6%. MLCO appears more attractively valued with a PEG of 0.41. MLCO earns a higher WallStSmart Score of 57/100 (C).

MLCO

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 10.0Quality: 4.8
Piotroski: 6/9Altman Z: 0.23

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

MLCOUndervalued (+71.4%)

Margin of Safety

+71.4%

Fair Value

$21.53

Current Price

$5.48

$16.05 discount

UndervaluedFair: $21.53Overvalued
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

MLCO2 strengths · Avg: 10.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

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

MLCO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
2.0%4/10

2.0% earnings growth

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Return on EquityProfitability
-21.6%2/10

ROE of -21.6% — below average capital efficiency

Altman Z-ScoreHealth
0.232/10

Distress zone — elevated risk

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 : MLCO

The strongest argument for MLCO centers on PEG Ratio, P/E Ratio. PEG of 0.41 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 EPS Growth, Profit Margin, Return on Equity. Thin 3.6% margins leave little buffer for downturns.

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.

MLCO is growing revenue faster at 8.6% — sustainability is the question.

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

Bottom Line

MLCO scores higher overall (57/100 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.

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.

Want to dig deeper into these stocks?