Critical Analysis: Belmond (BEL) vs. Red Lion Hotels Corporation (RLH)
Belmond (NYSE: BEL) and Red Lion Hotels Corporation (NYSE:RLH) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.
This is a summary of recent recommendations and price targets for Belmond and Red Lion Hotels Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Red Lion Hotels Corporation||0||0||1||0||3.00|
Belmond presently has a consensus price target of $14.25, indicating a potential upside of 15.38%. Red Lion Hotels Corporation has a consensus price target of $12.50, indicating a potential upside of 79.86%. Given Red Lion Hotels Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Red Lion Hotels Corporation is more favorable than Belmond.
Risk & Volatility
Belmond has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Red Lion Hotels Corporation has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.
This table compares Belmond and Red Lion Hotels Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Red Lion Hotels Corporation||-2.12%||-2.20%||-1.18%|
Earnings and Valuation
This table compares Belmond and Red Lion Hotels Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Belmond||$558.66 million||2.26||$107.25 million||$0.07||176.43|
|Red Lion Hotels Corporation||$169.73 million||0.97||$21.63 million||($0.18)||-38.61|
Belmond has higher revenue and earnings than Red Lion Hotels Corporation. Red Lion Hotels Corporation is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
75.5% of Belmond shares are owned by institutional investors. Comparatively, 62.9% of Red Lion Hotels Corporation shares are owned by institutional investors. 87.6% of Belmond shares are owned by company insiders. Comparatively, 14.7% of Red Lion Hotels Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Belmond beats Red Lion Hotels Corporation on 11 of the 13 factors compared between the two stocks.
Belmond Ltd. (Belmond) is a hotel company and adventure travel operator. As of December 31, 2016, Belmond owned, partially-owned and/or operated 45 properties, consisting of 34 individual deluxe hotels, 29 of which are owned (including nine under long-term lease), five European tourist trains, two cruise ships in Myanmar (one of which is under long-term charter), one French canal cruise business consisting of five small canal boats, and one stand-alone restaurant in the United States. It operates through six segments: owned hotels in Europe, owned hotels in North America (including one stand-alone restaurant), owned hotels in Rest of world, owned trains and cruises, part-owned/managed hotels and part-owned/managed trains. As of December 31, 2016, Belmond’s around the world portfolio of hotels in operation consisted of 3,272 individual guest rooms and multiple-room suites (keys).
About Red Lion Hotels Corporation
RLH Corporation (RLHC), formerly Red Lion Hotels Corporation, is a hospitality and leisure company. The Company is engaged in the franchising, management and ownership of hotels under the brands, including Hotel RL, Red Lion Hotel, Red Lion Inn & Suites, GuestHouse and Settle Inn & Suites (collectively the RLHC Brands). The RLHC brands represent upscale, midscale and economy hotels. The Company’s segments include company operated hotel segment, franchised hotels segment, entertainment segment and other. The hotels segment is engaged in guest room rentals, and food and beverage operations at its operated hotels. The franchised hotels segment is engaged in licensing its brands to franchisees. It offers various programs, which include its reservation system, guest loyalty program, national and regional sales, revenue management tools, quality inspections, advertising and brand standards. The entertainment segment consists of its WestCoast Entertainment and TicketsWest operations.
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