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

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’ competitors have a beta of 1.25, meaning that their average share price is 25% more volatile than the S&P 500.

Profitability

This table compares Red Lion Hotels and its competitors’ 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 and Valuation

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

Institutional & Insider 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, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Red Lion Hotels and its competitors, as reported by MarketBeat.

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 currently has a consensus target price of $13.00, indicating 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 probable upside, research analysts plainly believe Red Lion Hotels is more favorable than its competitors.

Summary

Red Lion Hotels competitors beat Red Lion Hotels on 8 of the 13 factors compared.

Red Lion Hotels Company Profile

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, Knights Inn, and Country Hearth Inns & Suites brands. It also develops technology and system offerings for the hospitality industry. As of December 31, 2018, it had a network of 1,318 franchised hotels, including a total of 83,800 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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