Financial Contrast: PLAYSTUDIOS (NASDAQ:MYPS) and Red Rock Resorts (NASDAQ:RRR)

PLAYSTUDIOS (NASDAQ:MYPS) and Red Rock Resorts (NASDAQ:RRR) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

PLAYSTUDIOS has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Institutional and Insider Ownership

37.5% of PLAYSTUDIOS shares are owned by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are owned by institutional investors. 14.7% of PLAYSTUDIOS shares are owned by company insiders. Comparatively, 53.8% of Red Rock Resorts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares PLAYSTUDIOS and Red Rock Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLAYSTUDIOS	$289.43 million	0.28	-$28.69 million	($0.29)	-2.19
Red Rock Resorts	$1.94 billion	3.45	$154.05 million	$3.14	20.11

Red Rock Resorts has higher revenue and earnings than PLAYSTUDIOS. PLAYSTUDIOS is trading at a lower price-to-earnings ratio than Red Rock Resorts, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for PLAYSTUDIOS and Red Rock Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLAYSTUDIOS	2	1	2	0	2.00
Red Rock Resorts	0	4	11	0	2.73

PLAYSTUDIOS presently has a consensus price target of $2.00, indicating a potential upside of 215.21%. Red Rock Resorts has a consensus price target of $66.43, indicating a potential upside of 5.23%. Given PLAYSTUDIOS’s higher possible upside, analysts clearly believe PLAYSTUDIOS is more favorable than Red Rock Resorts.

Profitability

This table compares PLAYSTUDIOS and Red Rock Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PLAYSTUDIOS	-15.10%	-8.71%	-6.77%
Red Rock Resorts	9.52%	59.86%	4.80%

Summary

Red Rock Resorts beats PLAYSTUDIOS on 13 of the 14 factors compared between the two stocks.

About PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.

About Red Rock Resorts

Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was founded in 1976 and is based in Las Vegas, Nevada.