Critical Comparison: InterContinental Hotels Group (IHG) & Full House Resorts (FLL)

InterContinental Hotels Group (NYSE: IHG) and Full House Resorts (NASDAQ:FLL) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

6.7% of InterContinental Hotels Group shares are owned by institutional investors. Comparatively, 33.9% of Full House Resorts shares are owned by institutional investors. 16.6% of Full House Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares InterContinental Hotels Group and Full House Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InterContinental Hotels Group N/A N/A N/A
Full House Resorts -5.46% -10.85% -3.40%

Analyst Recommendations

This is a summary of current ratings for InterContinental Hotels Group and Full House Resorts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InterContinental Hotels Group 0 3 2 0 2.40
Full House Resorts 0 0 2 0 3.00

InterContinental Hotels Group presently has a consensus target price of $64.19, suggesting a potential downside of 1.11%. Full House Resorts has a consensus target price of $3.88, suggesting a potential upside of 14.64%. Given Full House Resorts’ stronger consensus rating and higher possible upside, analysts clearly believe Full House Resorts is more favorable than InterContinental Hotels Group.

Volatility and Risk

InterContinental Hotels Group has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Dividends

InterContinental Hotels Group pays an annual dividend of $1.02 per share and has a dividend yield of 1.6%. Full House Resorts does not pay a dividend. InterContinental Hotels Group pays out 42.0% of its earnings in the form of a dividend. InterContinental Hotels Group has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares InterContinental Hotels Group and Full House Resorts’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InterContinental Hotels Group $1.78 billion 6.94 $592.00 million $2.43 26.71
Full House Resorts $161.27 million 0.56 -$5.02 million N/A N/A

InterContinental Hotels Group has higher revenue and earnings than Full House Resorts.

Summary

InterContinental Hotels Group beats Full House Resorts on 9 of the 14 factors compared between the two stocks.

About InterContinental Hotels Group

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels, resorts, and restaurants under the InterContinental, Kimpton, Hotel Indigo, EVEN, HUALUXE, Crowne Plaza, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, Holiday Inn Resort, avid, Staybridge Suites, and Candlewood Suites brands. It also provides IHG Rewards Club, a hotel loyalty program. As of December 31, 2017, the company had 5,348 hotels with 798,075 rooms. InterContinental Hotels Group PLC was founded in 1967 and is headquartered in Denham, the United Kingdom.

About Full House Resorts

Full House Resorts, Inc. owns, operates, develops, manages, leases, and/or invests in casinos, and related hospitality and entertainment facilities in the United States. The company owns and operates the Silver Slipper Casino and Hotel in Hancock County, Mississippi, which has approximately 37,000 square feet of gaming space, a surface parking lot, approximately 800-space parking garage, and 129-rooms, as well as a fine-dining restaurant, a buffet, a quick-service restaurant, and oyster and casino bars. It also owns and operates the Bronco Billy's Casino and Hotel in Cripple Creek, Colorado that has approximately 17,000 square feet of gaming space, 24 hotel rooms, and various acres of surface parking, as well as steakhouse, and 4 casual-dining outlets. In addition, the company owns the Rising Star Casino Resort in Rising Sun, Indiana, which has approximately 40,000 square feet of gaming space; a land-based pavilion with approximately 30,000 square feet of meeting and convention space; a 190-room hotel; surface parking; an 18-hole golf course on approximately 311 acres; and 5 dining outlets, as well as a leased 104-room hotel. Further, it owns Stockman's Casino that is located in Fallon, Nevada, which has approximately 8,400 square feet of gaming space, a bar, a fine-dining restaurant, and a coffee shop; and Grand Lodge Casino that has 18,900 square feet of gaming space, which is integrated into the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada on the north shore of Lake Tahoe. Full House Resorts, Inc. was founded in 1987 and is headquartered in Las Vegas, Nevada.

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