7 DAYS GROUP (SVN) and Red Lion Hotels (RLH) Head-To-Head Review
7 DAYS GROUP (NYSE: SVN) and Red Lion Hotels (NYSE:RLH) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Institutional & Insider Ownership
66.8% of Red Lion Hotels shares are owned by institutional investors. 14.7% of Red Lion Hotels shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares 7 DAYS GROUP and Red Lion Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|7 DAYS GROUP||N/A||N/A||N/A|
|Red Lion Hotels||-1.81%||-2.53%||-1.37%|
This is a summary of current ratings for 7 DAYS GROUP and Red Lion Hotels, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|7 DAYS GROUP||0||0||0||0||N/A|
|Red Lion Hotels||0||0||1||0||3.00|
Red Lion Hotels has a consensus target price of $13.75, suggesting a potential upside of 46.28%.
Valuation and Earnings
This table compares 7 DAYS GROUP 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|
|7 DAYS GROUP||N/A||N/A||N/A||$0.53||N/A|
|Red Lion Hotels||$164.07 million||1.35||-$4.67 million||($0.18)||-52.22|
7 DAYS GROUP has higher earnings, but lower revenue than Red Lion Hotels. Red Lion Hotels is trading at a lower price-to-earnings ratio than 7 DAYS GROUP, indicating that it is currently the more affordable of the two stocks.
7 DAYS GROUP Company Profile
7 Days Group Holdings Limited (7 Days Inn) is an offshore holding company structure and conducts its operations in the People’s Republic of China through its wholly owned subsidiary, 7 Days Inn (Shenzhen) Co., Ltd. (7 Days Shenzhen), and its subsidiaries and branches. The Company converts and operates limited service economy hotels across metropolitan areas in the People’s Republic of China. It offers accommodations and services. As of December 31, 2010, it had 568 hotels in operation, 247 of which were managed hotels, with 56,410 hotel rooms in 89 cities, and an additional 197 hotels with 19,345 hotel rooms under conversion. As of December 31, 2010, approximately 16.5 million members were registered with its 7 Days Club. In December 2011, the Company acquired Hunan Huatian Star Hotel Management Limited.
Red Lion Hotels Company Profile
Red Lion Hotels Corporation (RLHC) 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 and other. The company operated hotel 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. The franchised hotels segment offers various programs, which include its reservation system, guest loyalty program, national and regional sales, revenue management tools, quality inspections, advertising and brand standards.
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