Peak Resorts (NASDAQ:SKIS) and Red Lion Hotels (NYSE:RLH) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Earnings & Valuation
This table compares Peak Resorts and Red Lion Hotels’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Peak Resorts||$131.66 million||0.56||$1.35 million||$0.07||75.71|
|Red Lion Hotels||$171.93 million||1.78||$580,000.00||N/A||N/A|
This is a summary of recent ratings and target prices for Peak Resorts and Red Lion Hotels, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Red Lion Hotels||0||0||1||0||3.00|
Peak Resorts presently has a consensus target price of $6.33, suggesting a potential upside of 19.50%. Red Lion Hotels has a consensus target price of $16.25, suggesting a potential upside of 28.97%. Given Red Lion Hotels’ higher possible upside, analysts clearly believe Red Lion Hotels is more favorable than Peak Resorts.
Peak Resorts pays an annual dividend of $0.28 per share and has a dividend yield of 5.3%. Red Lion Hotels does not pay a dividend. Peak Resorts pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
47.0% of Peak Resorts shares are owned by institutional investors. Comparatively, 78.6% of Red Lion Hotels shares are owned by institutional investors. 13.9% of Peak Resorts shares are owned by insiders. Comparatively, 19.7% of Red Lion Hotels shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Peak Resorts has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Red Lion Hotels has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.
This table compares Peak Resorts and Red Lion Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Red Lion Hotels||2.80%||-1.97%||-1.18%|
Red Lion Hotels beats Peak Resorts on 7 of the 13 factors compared between the two stocks.
About Peak Resorts
Peak Resorts, Inc., through its subsidiaries, owns, operates, and leases day and overnight drive ski resorts in the United States. Its resorts activities and amenities include skiing, snowboarding, terrain parks, tubing, dining, lodging, equipment rentals and sales, ski and snowboard instruction, zip lines, mountain coasters, mountain biking, hiking, and other summer activities. The company also offers non-winter attractions, such as golf, roller coasters, swimming, summer concerts, and zip rides. It operates 14 ski resorts primarily located in the Northeast and Midwest. Peak Resorts, Inc. was founded in 1997 and is based in Wildwood, Missouri.
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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