Comparing Red Lion Hotels (NYSE:RLH) and Its Competitors

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

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 -18.31
Red Lion Hotels Competitors $3.49 billion $328.33 million 23.49

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 ratings and target prices for Red Lion Hotels and its peers, as provided 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 462 1861 2545 98 2.46

Red Lion Hotels currently has a consensus price target of $13.00, suggesting a potential upside of 57.77%. As a group, “Hotels & motels” companies have a potential upside of 10.31%. Given Red Lion Hotels’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Red Lion Hotels is more favorable than its peers.

Volatility & 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’ peers 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 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 9.18% 13.70% 4.61%

Institutional and Insider Ownership

75.6% of Red Lion Hotels shares are held by institutional investors. Comparatively, 72.5% of shares of all “Hotels & motels” companies are held by institutional investors. 19.7% of Red Lion Hotels shares are held by insiders. Comparatively, 14.5% of shares of all “Hotels & motels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Red Lion Hotels peers 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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