Comparing Red Lion Hotels (RLH) & Its Competitors

Red Lion Hotels (NYSE: RLH) is one of 34 publicly-traded companies in the “Hotels & motels” industry, but how does it contrast to its peers? We will compare Red Lion Hotels to similar businesses based on the strength of its analyst recommendations, valuation, earnings, institutional ownership, dividends, profitability and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Red Lion Hotels and its peers, 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 459 1852 2544 97 2.46

Red Lion Hotels presently has a consensus target price of $13.00, suggesting a potential upside of 65.18%. As a group, “Hotels & motels” companies have a potential upside of 8.51%. Given Red Lion Hotels’ stronger consensus rating and higher possible upside, equities analysts clearly believe Red Lion Hotels is more favorable than its peers.

Profitability

This table compares Red Lion Hotels and its peers’ 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 9.43% 13.72% 4.64%

Earnings & Valuation

This table compares Red Lion Hotels and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Red Lion Hotels $135.85 million $1.96 million -17.49
Red Lion Hotels Competitors $3.49 billion $328.33 million 23.47

Red Lion Hotels’ peers have higher revenue and earnings than Red Lion Hotels. Red Lion Hotels is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Red Lion Hotels has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Red Lion Hotels’ peers have a beta of 1.25, meaning that their average stock price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

75.6% of Red Lion Hotels shares are owned by institutional investors. Comparatively, 71.6% 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, 15.0% of shares of all “Hotels & motels” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Red Lion Hotels peers beat Red Lion Hotels on 8 of the 13 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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