Red Robin Gourmet Burgers (NASDAQ:RRGB – Get Free Report) and Choice Hotels International (NYSE:CHH – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.
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% |
Valuation and Earnings
This table compares Red Robin Gourmet Burgers and Choice Hotels International”s top-line 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 | 0.12 | -$23.28 million | ($1.69) | -4.43 |
| Choice Hotels International | $1.60 billion | 2.86 | $369.95 million | $7.08 | 14.31 |
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.
Volatility & Risk
Red Robin Gourmet Burgers has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Red Robin Gourmet Burgers and Choice Hotels International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Robin Gourmet Burgers | 1 | 1 | 2 | 0 | 2.25 |
| Choice Hotels International | 3 | 9 | 2 | 0 | 1.93 |
Red Robin Gourmet Burgers currently has a consensus price target of $8.33, indicating a potential upside of 11.41%. Choice Hotels International has a consensus price target of $112.67, indicating a potential upside of 11.24%. Given Red Robin Gourmet Burgers’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Red Robin Gourmet Burgers is more favorable than Choice Hotels International.
Insider & Institutional Ownership
84.0% of Red Robin Gourmet Burgers shares are held by institutional investors. Comparatively, 65.6% of Choice Hotels International shares are held by institutional investors. 4.1% of Red Robin Gourmet Burgers shares are held by company insiders. Comparatively, 23.9% of Choice Hotels International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Choice Hotels International beats Red Robin Gourmet Burgers on 9 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.
Receive News & Ratings for Red Robin Gourmet Burgers Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Red Robin Gourmet Burgers and related companies with MarketBeat.com's FREE daily email newsletter.
