Head-To-Head Analysis: Red Lion Hotels (RLH) vs. Marriott International (MAR)

Red Lion Hotels (NYSE: RLH) and Marriott International (NASDAQ:MAR) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Red Lion Hotels and Marriott International’s 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%
Marriott International 6.29% 41.82% 7.24%

Valuation & Earnings

This table compares Red Lion Hotels and Marriott International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red Lion Hotels $171.93 million 1.69 $580,000.00 N/A N/A
Marriott International $22.89 billion 2.05 $1.37 billion $4.36 30.52

Marriott International has higher revenue and earnings than Red Lion Hotels.

Dividends

Marriott International pays an annual dividend of $1.64 per share and has a dividend yield of 1.2%. Red Lion Hotels does not pay a dividend. Marriott International pays out 37.6% of its earnings in the form of a dividend. Marriott International has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Red Lion Hotels and Marriott International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Lion Hotels 0 0 1 0 3.00
Marriott International 0 8 7 0 2.47

Red Lion Hotels presently has a consensus price target of $13.75, suggesting a potential upside of 14.58%. Marriott International has a consensus price target of $132.85, suggesting a potential downside of 0.15%. Given Red Lion Hotels’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Red Lion Hotels is more favorable than Marriott International.

Volatility and Risk

Red Lion Hotels has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

66.6% of Red Lion Hotels shares are owned by institutional investors. Comparatively, 63.9% of Marriott International shares are owned by institutional investors. 19.7% of Red Lion Hotels shares are owned by company insiders. Comparatively, 13.0% of Marriott International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Marriott International beats Red Lion Hotels on 10 of the 15 factors compared between the two stocks.

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, 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.

Marriott International Company Profile

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through three segments: North American Full-Service, North American Limited-Service, and Asia Pacific. It operates its properties under the JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Westin, Renaissance, Le Méridien, Autograph Collection, Delta Hotels, Gaylord Hotels, Marriott Executive Apartments, Marriott Vacation Club, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of June 7, 2018, it operated, franchised, and licensed approximately 6,500 properties in 127 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.

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