Red Lion Hotels (NYSE: RLH) is one of 34 public companies in the “Hotels & motels” industry, but how does it contrast to its rivals? We will compare Red Lion Hotels to related businesses based on the strength of its dividends, risk, analyst recommendations, institutional ownership, earnings, valuation and profitability.
Volatility and Risk
Red Lion Hotels has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Red Lion Hotels’ rivals have a beta of 1.25, meaning that their average share price is 25% more volatile than the S&P 500.
This table compares Red Lion Hotels and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Red Lion Hotels||1.44%||-9.57%||-6.65%|
|Red Lion Hotels Competitors||9.30%||13.42%||4.63%|
Institutional & Insider Ownership
75.6% of Red Lion Hotels shares are owned by institutional investors. Comparatively, 71.4% of shares of all “Hotels & motels” companies are owned by institutional investors. 19.7% of Red Lion Hotels shares are owned by company insiders. Comparatively, 14.8% of shares of all “Hotels & motels” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Red Lion Hotels and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Red Lion Hotels||$135.85 million||$1.96 million||-17.22|
|Red Lion Hotels Competitors||$3.57 billion||$328.33 million||22.20|
Red Lion Hotels’ rivals have higher revenue and earnings than Red Lion Hotels. Red Lion Hotels is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings for Red Lion Hotels and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Red Lion Hotels||0||0||1||0||3.00|
|Red Lion Hotels Competitors||447||1831||2534||97||2.46|
Red Lion Hotels currently has a consensus price target of $13.00, indicating a potential upside of 67.74%. As a group, “Hotels & motels” companies have a potential upside of 16.57%. Given Red Lion Hotels’ stronger consensus rating and higher possible upside, analysts clearly believe Red Lion Hotels is more favorable than its rivals.
Red Lion Hotels rivals beat Red Lion Hotels on 7 of the 12 factors compared.
About Red Lion Hotels
Red Lion Hotels Corporation, doing business as RLH Corporation, operates as a hospitality and leisure company the United States. It operates in two segments, Company Operated Hotels and Franchised Hotels. The company owns, manages, and franchises upscale, midscale, and economy hotels under the Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Americas Best Value Inn, Canadas Best Value Inn, Signature and Signature Inn, and Country Hearth Inns & Suites brands; America's Best Inn & Suites, Jameson Inns, Lexington Hotels & Inns, and 3 Palm Hotels brands; and Value Inn Worldwide and Value Hotel Worldwide brands. As of December 31, 2017, it had a network of 1,061 franchised hotels, including a total of 65,200 rooms. The company was formerly known as WestCoast Hospitality Corporation and changed its name to Red Lion Hotels Corporation in September 2005. Red Lion Hotels Corporation was founded in 1937 and is headquartered in Denver, Colorado.
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