MGM vs RRR: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
MGM and RRR are similarly sized, but RRR trades noticeably cheaper on forward earnings (15.60x vs 21.80x): the market is paying up for MGM's profile and pricing RRR more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
MGM vs RRR: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | MGM | RRR | What it tells you |
|---|---|---|---|
| Forward P/E | 21.80 | 15.60 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 27.01 | 21.59 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.29 | 1.34 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 69% of range | 57% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 4.46 | 20.68 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: RRR is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how MGM and RRR affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MGM and RRR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MGM and RRR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does MGM Resorts International (MGM) do?
MGM Resorts International is a global casino, hotel, and entertainment company best known for its cluster of Las Vegas Strip resorts, including the Bellagio, Aria, MGM Grand, Mandalay Bay, and others. Beyond Las Vegas it operates regional casinos across the United States, controls MGM China (which runs properties in Macau, the world's largest gaming market), and is building a digital business that spans the BetMGM online sports-betting and iGaming joint venture with Entain and the LeoVegas online-casino operations. Its revenue is spread across these segments, so results depend on travel demand, consumer spending, and the health of both the US and Chinese economies.
What does Red Rock Resorts (RRR) do?
Station Casinos, founded in 1976 and held today through Red Rock Resorts, Inc., is the dominant operator in the Las Vegas locals market. Its customers are the roughly 2.3 million people who live in the Las Vegas valley, and its properties are built as neighbourhood entertainment centres rather than tourist destinations: casinos wrapped in movie theatres, bowling alleys, restaurants, banquet space and race and sports books. The estate is seven major gaming facilities, including Red Rock Casino Resort Spa, Green Valley Ranch, Durango Resort & Casino, Palace Station, Boulder Station, Sunset Station and Santa Fe Station, plus 16 smaller Wildfire and Seventy Six taverns, three of which are 50% owned. Casino play supplies the bulk of revenue, at ~$338 million of the ~$510 million in second-quarter 2026 net revenues, with food and beverage at ~$93 million and rooms at ~$47 million. A second and much smaller segment earns management and development fees from the North Fork Rancheria of Mono Indians in Madera County, California, worth ~$17.6 million across all of 2025. Everything else, including a ~$469 million book of land held for development, sits inside Station LLC.
MGM vs RRR: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- MGM drivers: Las Vegas Strip recovery and margins; Macau and MGM China.
- RRR drivers: Durango is the growth engine, and it is being doubled; North Fork turns a fee stream into an operating one.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The biggest risk is economic cyclicality: gaming, travel, and entertainment spending fall in a downturn, and MGM's largely fixed-cost resorts mean earnings can drop quickly when visitation or spending weakens. For RRR, the single-market concentration is the first thing to size.
MGM or RRR: which should you pick?
MGM vs RRR: the full fundamentals
MGM. Figures are approximate and tied to the asOf date; verify live numbers before acting. MGM is often valued on cash flow and adjusted EBITDA rather than simple earnings, partly because of its lease structure and buyback-driven share count. The key inputs are Las Vegas visitation and margins, the pace of Macau's recovery, and whether the digital arm converts revenue growth into durable profit, more than any single quarter's headline number.
RRR. Roughly 12 times EV to adjusted EBITDA prices RRR above most regional casino operators, which usually change hands closer to 7 to 9 times. Two things explain the gap: Station owns its real estate outright rather than paying rent under a REIT master lease, so its EBITDA is not encumbered the way a sale-leaseback operator's is, and the locals market has been structurally stronger than the Strip. The multiple also embeds a development pipeline that is currently costing money rather than making it.
Headline figures (approximate, Jul 2026): MGM shows q1 2026 net revenue ~$4.5 billion (up roughly 4% year over year, a Q1 record), las vegas strip Returned to year-over-year revenue growth after several soft quarters, mgm china (macau) Revenue up sharply on continued Macau recovery, betmgm Positive quarterly adjusted EBITDA; targeting larger profitability; RRR shows revenue (ttm) ~$2.005 billion for the twelve months to June 30, 2026, essentially flat against ~$2.011 billion in fiscal 2025 and up from ~$1.939 billion in 2024 and ~$1.724 billion in 2023. Second-quarter 2026 net revenues were $510.3 million, down 3.0% from $526.3 million a year earlier, with Las Vegas operations at $503.2 million and the Native American segment at just $3.8 million against a prior-year quarter that included a $6.1 million cumulative revenue catch-up., adjusted ebitda and margin ~$825 million for the twelve months to June 30, 2026, down from ~$848.6 million in fiscal 2025 and up from ~$795.9 million in 2024. Second-quarter adjusted EBITDA was $208.0 million, a 9.3% decline, with Las Vegas operations at $227.5 million on a ~45.2% segment margin versus ~46.6% a year earlier. Corporate costs ran ~$22.3 million in the quarter. Casino department margin held at 73.3%., earnings and the up-c split Consolidated net income was ~$320.8 million for the trailing twelve months, but only ~$168.9 million of that was attributable to Red Rock Resorts, Inc.; the remainder went to noncontrolling interests. Trailing diluted EPS was $2.83, giving a P/E near 21.6 at ~$61. Reported diluted share counts swing between periods because the if-converted method is applied to Class B only when dilutive: 58.8 million diluted shares in the second quarter of 2026 against 102.7 million in the year-ago quarter., share structure and ownership 59,130,385 Class A shares and 45,885,804 Class B shares were outstanding at August 3, 2026, with Class B carrying voting rights but no economics and pairing one-for-one with exchangeable Station Holdco LLC units. Station Holdco had 111,637,592 units at June 30, 2026, of which Red Rock held 65,751,788 (58.9%) and the noncontrolling holders 45,885,804 (41.1%). Fertitta family entities hold 99% of that noncontrolling interest. Screened market cap is ~$6.1 billion on a blended ~99.6 million share count; float is ~46.9 million shares..
The bottom line: MGM vs RRR
MGM and RRR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MGM and RRR exposure against your real portfolio. It is not an investment adviser.
Wondering how MGM or RRR fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in MGM Resorts International with AI
Connect the broker you already use and ask Walnut's AI how MGM fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between MGM and RRR?
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MGM Resorts International is a global casino, hotel, and entertainment company best known for its cluster of Las Vegas Strip resorts, including the Bellagio, Aria, MGM Grand, Mandalay Bay, and others. Station Casinos, founded in 1976 and held today through Red Rock Resorts, Inc., is the dominant operator in the Las Vegas locals market. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is MGM or RRR the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, MGM or RRR?
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On forward P/E (as of August 2026), MGM trades at 21.80x and RRR at 15.60x, so RRR is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both MGM and RRR?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of MGM vs RRR?
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MGM: The biggest risk is economic cyclicality: gaming, travel, and entertainment spending fall in a downturn, and MGM's largely fixed-cost resorts mean earnings can drop quickly when visitation or spending weakens. Macau exposure adds a distinct set of risks tied to Chinese consumer health, travel policy, regulation, and geopolitics that are outside the company's control. The digital business, while growing, competes with well-capitalized leaders in US online betting, so BetMGM's path to durable profit is not guaranteed. MGM also carries meaningful debt and long-term lease obligations from its asset-heavy model, which raises sensitivity to interest rates and to any revenue shortfall. Competition is intense in every market, from Las Vegas and regional US casinos to Macau, and new supply or license outcomes elsewhere can shift the landscape. MGM does not offer a large dividend, so returns rely mainly on the stock price and buybacks. RRR: The single-market concentration is the first thing to size. Almost all of the revenue comes from residents of one metropolitan area whose own economy runs on tourism, convention traffic and construction, so a Las Vegas employment shock hits the customer base and the visitor economy at the same time. Second-quarter 2026 already showed the strain of running a build cycle through live properties: net revenues fell 3.0% to $510.3 million, adjusted EBITDA fell 9.3% to $208.0 million, and room revenue dropped 8.8% year over year on renovation disruption at Sunset Station and Green Valley Ranch. Food and beverage margin fell to 15.4% from 19.6%. Depreciation rose 22.9% to $59.0 million as Durango and the renovations came into service, which is why consolidated net income fell 29.3% to $76.6 million even though the operating business remains highly profitable. Leverage is real and structural. Total debt was ~$3.6 billion against ~$136.5 million of cash and ~$292 million of total book equity, with interest expense of ~$99.1 million in the first half alone. The stack includes a ~$1.52 billion term loan due March 2031, $690 million of 4.50% notes due February 2028, $500 million of 4.625% notes due 2031, $500 million of 6.625% notes due 2032 and ~$345 million drawn on the revolver, so the 2028 maturity gets refinanced at rates well above the coupon it replaces. North Fork carries litigation risk that is not theoretical: after the California Supreme Court denied the Mono's petition for review in April 2026, the Picayune Rancheria of Chukchansi Indians filed suit in June 2026 in the Eastern District of California against the NIGC Chair, the Mono, Station Casinos LLC and Red Rock Resorts, Inc., seeking to enjoin gaming on the site weeks before the planned opening. Governance concentration compounds all of it, since the Fertitta family entities hold 99% of the noncontrolling interest and control the board through Class B stock, leaving Class A holders with limited say.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell MGM or RRR; figures are approximate and dated (as of August 2026). Verify current data before investing.