Choice Hotels International (NYSE:CHH) and Red Robin Gourmet Burgers (NASDAQ:RRGB) Financial Contrast

Red Robin Gourmet Burgers (NASDAQ:RRGB) and Choice Hotels International (NYSE:CHH) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Earnings & Valuation

This table compares Red Robin Gourmet Burgers and Choice Hotels International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Robin Gourmet Burgers	$1.21 billion	0.13	-$23.28 million	($1.69)	-4.86
Choice Hotels International	$1.60 billion	2.92	$369.95 million	$7.08	14.61

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 Red Robin Gourmet Burgers and Choice Hotels International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Robin Gourmet Burgers	-2.55%	N/A	-2.65%
Choice Hotels International	20.28%	205.69%	10.68%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Red Robin Gourmet Burgers and Choice Hotels International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Robin Gourmet Burgers	2	0	2	0	2.00
Choice Hotels International	3	9	2	0	1.93

Red Robin Gourmet Burgers currently has a consensus price target of $8.33, suggesting a potential upside of 1.38%. Choice Hotels International has a consensus price target of $112.67, suggesting a potential upside of 8.89%. Given Choice Hotels International’s higher probable upside, analysts clearly believe Choice Hotels International is more favorable than Red Robin Gourmet Burgers.

Insider and Institutional Ownership

84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. Comparatively, 65.6% of Choice Hotels International shares are owned by institutional investors. 4.1% of Red Robin Gourmet Burgers shares are owned by insiders. Comparatively, 23.9% of Choice Hotels International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Red Robin Gourmet Burgers has a beta of 2.49, suggesting that its stock price is 149% more volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Summary

Choice Hotels International beats Red Robin Gourmet Burgers on 10 of the 13 factors compared between the two stocks.

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.

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.