Boyd Gaming (NYSE: BYD) and Red Lion Hotels (NYSE:RLH) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Risk and Volatility
Boyd Gaming has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Red Lion Hotels has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
This table compares Boyd Gaming and Red Lion Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Red Lion Hotels||3.96%||-0.63%||-0.37%|
This is a breakdown of recent ratings and target prices for Boyd Gaming and Red Lion Hotels, 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|
Boyd Gaming presently has a consensus target price of $40.10, suggesting a potential upside of 7.39%. Red Lion Hotels has a consensus target price of $13.75, suggesting a potential upside of 18.53%. Given Red Lion Hotels’ stronger consensus rating and higher probable upside, analysts clearly believe Red Lion Hotels is more favorable than Boyd Gaming.
Valuation & Earnings
This table compares Boyd Gaming and Red Lion Hotels’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Boyd Gaming||$2.38 billion||1.76||$189.19 million||$1.03||36.25|
|Red Lion Hotels||$171.93 million||1.63||$580,000.00||N/A||N/A|
Boyd Gaming has higher revenue and earnings than Red Lion Hotels.
Institutional and Insider Ownership
73.6% of Boyd Gaming shares are owned by institutional investors. Comparatively, 66.6% of Red Lion Hotels shares are owned by institutional investors. 28.9% of Boyd Gaming shares are owned by insiders. Comparatively, 19.7% of Red Lion Hotels shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Boyd Gaming pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Red Lion Hotels does not pay a dividend. Boyd Gaming pays out 23.3% of its earnings in the form of a dividend.
Boyd Gaming beats Red Lion Hotels on 11 of the 14 factors compared between the two stocks.
About Boyd Gaming
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest and South. As of December 31, 2017, the company owned and operated 24 gaming entertainment properties offering a total of 1,358,856 square feet of casino space, 30,267 slot machines, 632 table games, and 9,372 hotel rooms located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, and Mississippi. It also owns and operates a travel agency in Hawaii. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
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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