Full House Resorts (NASDAQ:FLL) and GreenTree Hospitality Group (NYSE:GHG) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

GreenTree Hospitality Group pays an annual dividend of $0.28 per share and has a dividend yield of 2.8%. Full House Resorts does not pay a dividend. GreenTree Hospitality Group pays out 45.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

42.9% of Full House Resorts shares are held by institutional investors. Comparatively, 8.9% of GreenTree Hospitality Group shares are held by institutional investors. 16.1% of Full House Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Full House Resorts and GreenTree Hospitality Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Full House Resorts $163.88 million 0.38 -$4.37 million ($0.13) -17.62
GreenTree Hospitality Group $137.45 million 7.51 $57.32 million $0.61 16.66

GreenTree Hospitality Group has lower revenue, but higher earnings than Full House Resorts. Full House Resorts is trading at a lower price-to-earnings ratio than GreenTree Hospitality Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Full House Resorts and GreenTree Hospitality Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Full House Resorts -1.23% -3.48% -1.07%
GreenTree Hospitality Group 46.29% 24.60% 14.12%

Risk and Volatility

Full House Resorts has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, GreenTree Hospitality Group has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Full House Resorts and GreenTree Hospitality Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Full House Resorts 0 0 1 0 3.00
GreenTree Hospitality Group 0 0 3 0 3.00

GreenTree Hospitality Group has a consensus target price of $16.07, suggesting a potential upside of 58.14%. Given GreenTree Hospitality Group’s higher probable upside, analysts clearly believe GreenTree Hospitality Group is more favorable than Full House Resorts.

Summary

GreenTree Hospitality Group beats Full House Resorts on 11 of the 15 factors compared between the two stocks.

About Full House Resorts

Full House Resorts, Inc. owns, develops, operates, manages, leases, and/or invests in casinos, and related hospitality and entertainment facilities in the United States. The company owns and operates the Silver Slipper Casino and Hotel in Hancock County, Mississippi, which has 920 slot machines and 26 table games, a surface parking lot, approximately 800-space parking garage, and 129 hotel rooms; a fine-dining restaurant, a buffet, and a quick-service restaurant, as well as oyster, casino, beachfront bars; and 37-space beachfront RV park. It also owns and operates the Bronco Billy's Casino and Hotel in Cripple Creek, Colorado that has gaming space, 36 hotel rooms, and various acres of surface parking, as well as 1 steakhouse and 4 casual dining outlets. In addition, the company owns and operates the Rising Star Casino Resort in Rising Sun, Indiana, which has 917 slot machines and 25 table games; a land-based pavilion with approximately 30,000 square feet of meeting and convention space; a 190-room hotel; a 56-space RV park; surface parking; an 18-hole golf course on approximately 311 acres; and 5 dining outlets, as well as a leased 104-room hotel. Further, it owns and operates the Stockman's Casino that is located in Fallon, Nevada, which has 225 slot machines and 4 table games, a bar, a fine-dining restaurant, and a coffee shop, and approximately 300 surface parking spaces; and the Grand Lodge Casino that has 270 slot machines and 17 table games, which is integrated into the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada on the north shore of Lake Tahoe. Full House Resorts, Inc. was founded in 1987 and is headquartered in Las Vegas, Nevada.

About GreenTree Hospitality Group

GreenTree Hospitality Group Ltd., through its subsidiaries, owns, operates, leases, franchises, and manages hotels in the People's Republic of China. The company operates hotels under the various brands, including GreenTree Eastern, as well as Gme, Gya, and VX; GreenTree Inns and GreenTree Alliance; and Vatica and Shell. As of March 31, 2018, it had 26 leased-and-operated hotels and 2,328 franchised-and-managed hotels with 195,552 hotel rooms in 266 cities. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China. GreenTree Hospitality Group Ltd. is a subsidiary of GreenTree Inns Hotel Management Group, Inc.

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