Reviewing Red Rock Resorts (NASDAQ:RRR) & Corsair Gaming (NASDAQ:CRSR)

Corsair Gaming (NASDAQ:CRSRGet Free Report) and Red Rock Resorts (NASDAQ:RRRGet Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Earnings and Valuation

This table compares Corsair Gaming and Red Rock Resorts”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corsair Gaming $1.47 billion 0.64 -$12.47 million $0.08 110.75
Red Rock Resorts $2.01 billion 3.31 $188.07 million $3.11 20.36

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

Insider & Institutional Ownership

25.7% of Corsair Gaming shares are owned by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are owned by institutional investors. 54.5% of Corsair Gaming shares are owned by company insiders. Comparatively, 54.3% of Red Rock Resorts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Corsair Gaming and Red Rock Resorts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corsair Gaming 1 3 3 0 2.29
Red Rock Resorts 1 3 12 1 2.76

Corsair Gaming presently has a consensus target price of $8.33, indicating a potential downside of 5.94%. Red Rock Resorts has a consensus target price of $67.94, indicating a potential upside of 7.29%. Given Red Rock Resorts’ stronger consensus rating and higher possible upside, analysts clearly believe Red Rock Resorts is more favorable than Corsair Gaming.

Volatility & Risk

Corsair Gaming has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Corsair Gaming 0.71% 9.71% 4.97%
Red Rock Resorts 9.21% 61.67% 4.51%

Summary

Red Rock Resorts beats Corsair Gaming on 11 of the 15 factors compared between the two stocks.

About Corsair Gaming

(Get Free Report)

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.

About Red Rock Resorts

(Get Free Report)

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.

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