Choice Hotels International (NYSE:CHH – Get Free Report) and Red Robin Gourmet Burgers (NASDAQ:RRGB – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Institutional & Insider Ownership
65.6% of Choice Hotels International shares are owned by institutional investors. Comparatively, 84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. 23.9% of Choice Hotels International shares are owned by company insiders. Comparatively, 4.1% of Red Robin Gourmet Burgers shares are owned 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.
Analyst Recommendations
This is a summary of current ratings and target prices for Choice Hotels International and Red Robin Gourmet Burgers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Choice Hotels International | 3 | 9 | 2 | 0 | 1.93 |
| Red Robin Gourmet Burgers | 1 | 1 | 2 | 0 | 2.25 |
Risk & Volatility
Choice Hotels International has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 2.44, indicating that its share price is 144% more volatile than the S&P 500.
Valuation & Earnings
This table compares Choice Hotels International and Red Robin Gourmet Burgers”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Choice Hotels International | $1.60 billion | 2.86 | $369.95 million | $7.08 | 14.31 |
| Red Robin Gourmet Burgers | $1.21 billion | 0.12 | -$23.28 million | ($1.69) | -4.43 |
Choice Hotels International has higher revenue and earnings than Red Robin Gourmet Burgers. Red Robin Gourmet Burgers is trading at a lower price-to-earnings ratio than Choice Hotels International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Choice Hotels International and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Choice Hotels International | 20.28% | 205.69% | 10.68% |
| Red Robin Gourmet Burgers | -2.55% | N/A | -2.65% |
Summary
Choice Hotels International beats Red Robin Gourmet Burgers on 9 of the 13 factors compared between the two stocks.
About Choice Hotels International
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.
About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.
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