Contrasting Candlewood Hotel (OTCMKTS:CNDL) & Red Rock Resorts (NASDAQ:RRR)

Red Rock Resorts (NASDAQ:RRR) and Candlewood Hotel (OTCMKTS:CNDL) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Profitability

This table compares Red Rock Resorts and Candlewood Hotel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Rock Resorts	8.59%	73.20%	4.11%
Candlewood Hotel	N/A	N/A	N/A

Valuation and Earnings

This table compares Red Rock Resorts and Candlewood Hotel”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Rock Resorts	$1.72 billion	3.03	$176.00 million	$2.70	18.33
Candlewood Hotel	N/A	N/A	N/A	N/A	N/A

Red Rock Resorts has higher revenue and earnings than Candlewood Hotel.

Insider and Institutional Ownership

47.8% of Red Rock Resorts shares are held by institutional investors. 53.3% of Red Rock Resorts shares are held by insiders. Comparatively, 30.9% of Candlewood Hotel shares are held by 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 Ratings

This is a summary of current recommendations and price targets for Red Rock Resorts and Candlewood Hotel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Rock Resorts	0	6	6	0	2.50
Candlewood Hotel	0	0	0	0	0.00

Red Rock Resorts presently has a consensus price target of $60.42, indicating a potential upside of 22.08%. Given Red Rock Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Red Rock Resorts is more favorable than Candlewood Hotel.

Summary

Red Rock Resorts beats Candlewood Hotel on 9 of the 9 factors compared between the two stocks.

About Red Rock Resorts

Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was founded in 1976 and is based in Las Vegas, Nevada.

About Candlewood Hotel

Candlewood Hotel Company, Inc. operates, franchises, owns, and manages business-travel hotels. It offers studios, one-bedroom suites, and accommodations to mid-market business and personal travelers. Each hotel is equipped with an exercise room, a complimentary guest laundry facility, a dry cleaning drop, free local calls and long distance calls, and self-service packaged foods and beverages; and a free First Night Kit’ complete with items, such as coffee and popcorn. In addition, studio and one-bedroom suite offers amenities, such as two telephones, with two incoming direct dial lines and computer connections; an executive desk with a quad-outlet to accommodate office equipment needs, an executive chair, a bulletin board, a guest chair, and personalized remote accessible telephone mail; a television, video cassette player, and compact disc player; an iron and ironing board; and a kitchen. In addition, it operates recreational facilities, such as swimming pool and fitness center; a kitchen in every suite; a complimentary cooked to order’ breakfast; and a hospitality area for breakfast and socializing. The company was founded in 1995 and is based in Wichita, Kansas.