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EAT vs RRR

EAT
Brinker International, Inc.
NEUTRAL
Price
$138.67
Market Cap
$6.04B
Sector
Consumer Cyclical
AI Confidence
80%
RRR
Red Rock Resorts, Inc.
NEUTRAL
Price
$56.91
Market Cap
$5.85B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
EAT
13.99
RRR
18.24
Forward P/E
EAT
11.22
RRR
17.39
P/B Ratio
EAT
15.9
RRR
15.93
P/S Ratio
EAT
1.06
RRR
2.91
EV/EBITDA
EAT
9.62
RRR
8.33

Profitability

Gross Margin
EAT
18.68%
RRR
67.47%
Operating Margin
EAT
11.6%
RRR
31.77%
Profit Margin
EAT
7.98%
RRR
9.35%
ROE
EAT
177.8%
RRR
111.3%
ROA
EAT
13.87%
RRR
9.38%

Growth

Revenue Growth
EAT
6.9%
RRR
3.2%
Earnings Growth
EAT
9.6%
RRR
-1.8%

Financial Health

Debt/Equity
EAT
4.65
RRR
10.46
Current Ratio
EAT
0.36
RRR
0.79
Quick Ratio
EAT
0.18
RRR
0.6

Dividends

Dividend Yield
EAT
--
RRR
1.83%
Payout Ratio
EAT
0.0%
RRR
32.37%

AI Verdict

EAT NEUTRAL

Brinker International presents a dichotomy between strong operational performance and a precarious balance sheet. While the Piotroski F-Score of 4/9 indicates stable health, the company's liquidity is alarming with a current ratio of 0.36 and high leverage (Debt/Equity 4.65). Valuation is attractive on a growth basis (PEG 0.89) and intrinsic value ($212.07), but the Graham Number ($44.09) reveals a lack of defensive support. Strong earnings beats and consistent growth are currently offsetting significant financial risk and bearish insider activity.

Strengths
Strong earnings track record with 3/4 recent beats and high average surprises
Attractive PEG ratio of 0.89 suggesting undervaluation relative to growth
Exceptional ROE of 177.80% indicating high efficiency on equity
Risks
Severe liquidity risk indicated by a current ratio of 0.36 and quick ratio of 0.18
High financial leverage with a Debt/Equity ratio of 4.65
Bearish insider sentiment with $15.27M in sales and zero buys
RRR NEUTRAL

RRR presents a stark contrast between strong operational profitability and concerning financial leverage. The deterministic baseline is weak, with a Piotroski F-Score of 4/9 (Stable) and a current price of $56.91 trading at a massive premium to its Graham Number ($15.84) and Intrinsic Value ($21.84). While operating margins are robust at 31.77%, the Debt/Equity ratio of 10.46 and a Current Ratio of 0.79 indicate significant leverage and liquidity risks. The stock is currently supported by analyst optimism rather than fundamental value or technical momentum.

Strengths
Strong operating margins (31.77%) and gross margins (67.47%)
Exceptional ROE of 111.30% (though amplified by high leverage)
Consistent history of earnings beats over the last 25 quarters
Risks
Extreme leverage with a Debt/Equity ratio of 10.46
Liquidity risk indicated by a Current Ratio of 0.79
Significant valuation gap between market price and intrinsic/Graham values

Compare Another Pair

EAT vs RRR: Head-to-Head Comparison

This page compares Brinker International, Inc. (EAT) and Red Rock Resorts, Inc. (RRR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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