Melco Resorts & Entertainment Ltd (MLCO)vsRed Rock Resorts Inc (RRR)
MLCO
Melco Resorts & Entertainment Ltd
$5.48
-0.72%
CONSUMER CYCLICAL · Cap: $2.25B
RRR
Red Rock Resorts Inc
$58.75
+0.02%
CONSUMER CYCLICAL · Cap: $6.04B
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
Buy57
out of 100
Grade: C
RRR
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.4%
Fair Value
$21.53
Current Price
$5.48
$16.05 discount
Margin of Safety
-205.7%
Fair Value
$21.22
Current Price
$58.75
$37.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Every $100 of equity generates 111 in profit
Strong operational efficiency at 31.8%
Areas to Watch
2.0% earnings growth
3.6% margin — thin
ROE of -21.6% — below average capital efficiency
Distress zone — elevated risk
Trading at 16.5x book value
3.2% revenue growth
Expensive relative to growth rate
Earnings declined 1.8%
Comparative Analysis Report
WallStSmart ResearchBull 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.
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