Marcus Corporation (The) (NYSE: MCS) and Red Lion Hotels Corporation (NYSE:RLH) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

59.5% of Marcus Corporation (The) shares are held by institutional investors. Comparatively, 63.3% of Red Lion Hotels Corporation shares are held by institutional investors. 33.5% of Marcus Corporation (The) shares are held by company insiders. Comparatively, 14.7% of Red Lion Hotels Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Marcus Corporation (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Red Lion Hotels Corporation does not pay a dividend. Marcus Corporation (The) pays out 33.1% of its earnings in the form of a dividend. Red Lion Hotels Corporation has increased its dividend for 5 consecutive years.

Profitability

This table compares Marcus Corporation (The) and Red Lion Hotels Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marcus Corporation (The) 7.18% 10.78% 4.71%
Red Lion Hotels Corporation -2.12% -2.20% -1.18%

Valuation and Earnings

This table compares Marcus Corporation (The) and Red Lion Hotels Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marcus Corporation (The) $594.17 million 0.79 $125.32 million $1.51 16.09
Red Lion Hotels Corporation $169.73 million 0.97 $21.63 million ($0.18) -38.89

Marcus Corporation (The) has higher revenue and earnings than Red Lion Hotels Corporation. Red Lion Hotels Corporation is trading at a lower price-to-earnings ratio than Marcus Corporation (The), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Marcus Corporation (The) and Red Lion Hotels Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marcus Corporation (The) 0 0 4 0 3.00
Red Lion Hotels Corporation 0 0 1 0 3.00

Marcus Corporation (The) currently has a consensus target price of $37.60, indicating a potential upside of 54.73%. Red Lion Hotels Corporation has a consensus target price of $13.00, indicating a potential upside of 85.71%. Given Red Lion Hotels Corporation’s higher possible upside, analysts plainly believe Red Lion Hotels Corporation is more favorable than Marcus Corporation (The).

Risk & Volatility

Marcus Corporation (The) has a beta of 0.63, suggesting that its stock price is 37% 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.

Summary

Marcus Corporation (The) beats Red Lion Hotels Corporation on 10 of the 15 factors compared between the two stocks.

Marcus Corporation (The) Company Profile

The Marcus Corporation operates principally in two business segments: Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Ohio, Minnesota, Iowa, North Dakota and Nebraska, and a family entertainment center in Wisconsin. The Hotels and Resorts segment owns and operates hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska, and manages hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, Georgia, Florida and California. As of December 31, 2015, the Company owned or operated 53 movie theatre locations with a total of 668 screens in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. Its owned and operated hotels and resorts include The Pfister Hotel, The Hilton Milwaukee City Center, Hilton Madison at Monona Terrace, The Grand Geneva Resort & Spa, InterContinental Milwaukee, Skirvin Hilton, AC Hotel Chicago Downtown and The Lincoln Marriott Cornhusker Hotel.

Red Lion Hotels Corporation Company Profile

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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