Red Rock Resorts (NASDAQ:RRR – Get Free Report) and Tuniu (NASDAQ:TOUR – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Risk & Volatility
Red Rock Resorts has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Red Rock Resorts and Tuniu, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Rock Resorts | 0 | 4 | 14 | 1 | 2.84 |
| Tuniu | 1 | 0 | 0 | 0 | 1.00 |
Red Rock Resorts currently has a consensus price target of $69.35, indicating a potential upside of 40.22%. Given Red Rock Resorts’ stronger consensus rating and higher possible upside, equities analysts plainly believe Red Rock Resorts is more favorable than Tuniu.
Dividends
Red Rock Resorts pays an annual dividend of $1.04 per share and has a dividend yield of 2.1%. Tuniu pays an annual dividend of $1.18 per share and has a dividend yield of 24.8%. Red Rock Resorts pays out 52.5% of its earnings in the form of a dividend. Tuniu pays out 368.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Red Rock Resorts and Tuniu”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Red Rock Resorts | $2.01 billion | 2.58 | $188.07 million | $1.98 | 24.98 |
| Tuniu | $82.65 million | 0.63 | $4.45 million | $0.32 | 14.84 |
Red Rock Resorts has higher revenue and earnings than Tuniu. Tuniu 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.
Institutional & Insider Ownership
47.8% of Red Rock Resorts shares are owned by institutional investors. 54.3% of Red Rock Resorts shares are owned by insiders. Comparatively, 76.1% of Tuniu shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Red Rock Resorts and Tuniu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Red Rock Resorts | 5.79% | 44.10% | 3.01% |
| Tuniu | 3.73% | 3.17% | 1.90% |
Summary
Red Rock Resorts beats Tuniu on 15 of the 17 factors compared between the two stocks.
About Red Rock Resorts
Red Rock Resorts, Inc. is a gaming, entertainment and hospitality company focused on the Las Vegas market. Through its subsidiary Station Casinos LLC, it owns and operates casino resorts and other gaming and entertainment properties, primarily serving residents of the Las Vegas area. Its properties include casino gaming, restaurants, bars, hotels and entertainment venues. The company’s portfolio includes resorts such as Red Rock Casino Resort & Spa, Green Valley Ranch Resort Spa & Casino, and Durango Casino & Resort, along with several Station-branded properties.
About Tuniu
Tuniu Corporation (NASDAQ: TOUR) is a China-based online leisure travel company that operates the Tuniu.com platform. The company provides consumers with travel-planning and booking services, with a focus on organized package tours and self-guided travel products. Its offerings include domestic and international tour packages, transportation and accommodation reservations, attraction tickets, visa assistance, travel insurance, and other travel-related services. Tuniu also provides customized travel options and destination information through its website and mobile applications.
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