Head-To-Head Contrast: Extended Stay America (STAY) & Full House Resorts (FLL)

Extended Stay America (NYSE:STAY) and Full House Resorts (NASDAQ:FLL) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Extended Stay America and Full House Resorts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extended Stay America 0 1 6 0 2.86
Full House Resorts 0 0 1 0 3.00

Extended Stay America currently has a consensus price target of $21.93, suggesting a potential upside of 19.31%. Full House Resorts has a consensus price target of $4.50, suggesting a potential upside of 120.59%. Given Full House Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Full House Resorts is more favorable than Extended Stay America.

Valuation & Earnings

This table compares Extended Stay America and Full House Resorts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Extended Stay America N/A N/A N/A N/A N/A
Full House Resorts $163.88 million 0.34 -$4.37 million ($0.13) -15.69

Extended Stay America has higher earnings, but lower revenue than Full House Resorts.

Dividends

Extended Stay America pays an annual dividend of $0.88 per share and has a dividend yield of 4.8%. Full House Resorts does not pay a dividend. Extended Stay America has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

96.7% of Extended Stay America shares are held by institutional investors. Comparatively, 46.7% of Full House Resorts shares are held by institutional investors. 0.7% of Extended Stay America shares are held by company insiders. Comparatively, 15.7% of Full House Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Extended Stay America and Full House Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Extended Stay America N/A N/A N/A
Full House Resorts -2.67% -2.80% -0.92%

Summary

Extended Stay America beats Full House Resorts on 7 of the 11 factors compared between the two stocks.

Extended Stay America Company Profile

Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2018, it had 599 hotels and approximately 66,000 rooms, as well as managed 26 hotels under the Extended Stay America brand. It serves customers in the mid-priced extended stay segment. The company also relicenses Extended Stay America brand to unaffiliated third parties. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.

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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