Las Vegas Sands (NYSE: RLH) and Red Lion Hotels (NYSE:RLH) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Institutional & Insider Ownership
37.9% of Las Vegas Sands shares are held by institutional investors. Comparatively, 66.4% of Red Lion Hotels shares are held by institutional investors. 10.2% of Las Vegas Sands shares are held by insiders. Comparatively, 19.7% of Red Lion Hotels shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Las Vegas Sands has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Red Lion Hotels has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
This table compares Las Vegas Sands and Red Lion Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Las Vegas Sands||28.06%||35.22%||12.80%|
|Red Lion Hotels||2.80%||-1.97%||-1.18%|
Las Vegas Sands pays an annual dividend of $3.00 per share and has a dividend yield of 4.6%. Red Lion Hotels does not pay a dividend. Las Vegas Sands pays out 98.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Las Vegas Sands has increased its dividend for 5 consecutive years.
Valuation and Earnings
This table compares Las Vegas Sands and Red Lion Hotels’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Las Vegas Sands||$12.88 billion||4.03||$2.81 billion||$3.04||21.66|
|Red Lion Hotels||$171.93 million||1.98||$580,000.00||N/A||N/A|
Las Vegas Sands has higher revenue and earnings than Red Lion Hotels.
This is a summary of current ratings for Las Vegas Sands and Red Lion Hotels, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Las Vegas Sands||0||7||5||0||2.42|
|Red Lion Hotels||0||0||1||0||3.00|
Las Vegas Sands currently has a consensus price target of $76.42, indicating a potential upside of 16.03%. Red Lion Hotels has a consensus price target of $16.25, indicating a potential upside of 15.66%. Given Las Vegas Sands’ higher possible upside, equities analysts plainly believe Las Vegas Sands is more favorable than Red Lion Hotels.
Las Vegas Sands beats Red Lion Hotels on 11 of the 15 factors compared between the two stocks.
Las Vegas Sands Company Profile
Las Vegas Sands Corp., together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the United States. It owns and operates The Venetian Macao Resort Hotel, the Sands Cotai Central, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People's Republic of China; and iconic Marina Bay Sands in Singapore. The company also owns and operates The Venetian Resort Hotel Casino and The Palazzo Resort Hotel Casino on the Las Vegas Strip; the Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Casino Resort Bethlehem in Bethlehem, Pennsylvania. Its integrated resorts include accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada.
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.
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