Red Lion Hotels (NYSE: RLH) and Full House Resorts (NASDAQ:FLL) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
Risk and Volatility
Red Lion Hotels has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
This table compares Red Lion Hotels and Full House Resorts’ gross 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||1.85||$580,000.00||N/A||N/A|
|Full House Resorts||$161.27 million||0.50||-$5.02 million||N/A||N/A|
Red Lion Hotels has higher revenue and earnings than Full House Resorts.
Institutional and Insider Ownership
67.2% of Red Lion Hotels shares are owned by institutional investors. Comparatively, 45.9% of Full House Resorts shares are owned by institutional investors. 19.7% of Red Lion Hotels shares are owned by insiders. Comparatively, 16.6% of Full House Resorts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Red Lion Hotels and Full House Resorts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Red Lion Hotels||0||0||1||0||3.00|
|Full House Resorts||0||0||2||0||3.00|
Red Lion Hotels presently has a consensus price target of $16.25, suggesting a potential upside of 23.57%. Full House Resorts has a consensus price target of $3.88, suggesting a potential upside of 28.52%. Given Full House Resorts’ higher possible upside, analysts plainly believe Full House Resorts is more favorable than Red Lion Hotels.
This table compares Red Lion Hotels and Full House Resorts’ 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%|
|Full House Resorts||-4.88%||-9.25%||-2.90%|
Red Lion Hotels beats Full House Resorts on 9 of the 11 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.
Full House Resorts Company Profile
Full House Resorts, Inc. owns, operates, develops, 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 approximately 37,000 square feet of gaming space, a surface parking lot, approximately 800-space parking garage, and 129-rooms, as well as a fine-dining restaurant, a buffet, a quick-service restaurant, and oyster and casino bars. It also owns and operates the Bronco Billy's Casino and Hotel in Cripple Creek, Colorado that has approximately 17,000 square feet of gaming space, 24 hotel rooms, and various acres of surface parking, as well as steakhouse, and 4 casual-dining outlets. In addition, the company owns the Rising Star Casino Resort in Rising Sun, Indiana, which has approximately 40,000 square feet of gaming space; a land-based pavilion with approximately 30,000 square feet of meeting and convention space; a 190-room hotel; 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 Stockman's Casino that is located in Fallon, Nevada, which has approximately 8,400 square feet of gaming space, a bar, a fine-dining restaurant, and a coffee shop; and Grand Lodge Casino that has 18,900 square feet of gaming space, 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.
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