Financial Comparison: Red Lion Hotels (RLH) versus 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 related companies based on the strength of its profitability, analyst recommendations, institutional ownership, dividends, valuation, earnings and risk.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Red Lion Hotels $135.85 million $1.96 million -17.24
Red Lion Hotels Competitors $3.49 billion $328.33 million 23.41

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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Red Lion Hotels and its peers, 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 1849 2544 97 2.46

Red Lion Hotels currently has a consensus price target of $13.00, indicating a potential upside of 67.53%. As a group, “Hotels & motels” companies have a potential upside of 8.96%. Given Red Lion Hotels’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Red Lion Hotels is more favorable than its peers.

Institutional and Insider Ownership

75.6% of Red Lion Hotels shares are held by institutional investors. Comparatively, 71.6% of shares of all “Hotels & motels” companies are held by institutional investors. 19.7% of Red Lion Hotels shares are held by company insiders. Comparatively, 15.0% of shares of all “Hotels & motels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

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

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%

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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