Belmond (NYSE: BEL) and La Quinta Holdings (NYSE:LQ) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Belmond and La Quinta Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Belmond $558.66 million 2.26 $107.25 million $0.07 176.43
La Quinta Holdings $966.42 million 1.89 $299.78 million $0.35 44.37

La Quinta Holdings has higher revenue and earnings than Belmond. La Quinta Holdings is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Belmond has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, La Quinta Holdings has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Insider & Institutional Ownership

75.6% of Belmond shares are owned by institutional investors. Comparatively, 98.8% of La Quinta Holdings shares are owned by institutional investors. 87.6% of Belmond shares are owned by insiders. Comparatively, 1.3% of La Quinta Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Belmond and La Quinta Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Belmond 1.18% 3.99% 1.77%
La Quinta Holdings 4.13% 7.28% 1.67%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Belmond and La Quinta Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Belmond 0 3 2 0 2.40
La Quinta Holdings 1 4 2 0 2.14

Belmond presently has a consensus price target of $14.25, indicating a potential upside of 15.38%. La Quinta Holdings has a consensus price target of $12.69, indicating a potential downside of 18.29%. Given Belmond’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Belmond is more favorable than La Quinta Holdings.

Summary

La Quinta Holdings beats Belmond on 7 of the 13 factors compared between the two stocks.

Belmond Company Profile

Belmond Ltd. (Belmond) is a hotel company and adventure travel operator. As of December 31, 2016, Belmond owned, partially-owned and/or operated 45 properties, consisting of 34 individual deluxe hotels, 29 of which are owned (including nine under long-term lease), five European tourist trains, two cruise ships in Myanmar (one of which is under long-term charter), one French canal cruise business consisting of five small canal boats, and one stand-alone restaurant in the United States. It operates through six segments: owned hotels in Europe, owned hotels in North America (including one stand-alone restaurant), owned hotels in Rest of world, owned trains and cruises, part-owned/managed hotels and part-owned/managed trains. As of December 31, 2016, Belmond’s around the world portfolio of hotels in operation consisted of 3,272 individual guest rooms and multiple-room suites (keys).

La Quinta Holdings Company Profile

La Quinta Holdings Inc. is an owner, operator and franchisor of select-service hotels primarily serving the midscale and upper-midscale sectors under the La Quinta brand. The Company’s segments include owned hotels, franchise and management, and corporate and other. The owned hotels segment is engaged in the operation of owned hotel properties. The franchise and management segment is engaged in various license, franchise and management agreements relating to its owned and franchised hotels. As of December 31, 2016, its portfolio consisted of 888 hotels representing approximately 87,200 rooms located primarily across 48 states in the United States, as well as in Canada, Mexico, Honduras and Colombia, of which 322 hotels were owned and operated, and 566 were franchised. As of December 31, 2016, the Company had a pipeline of 248 franchised hotels in the United States, Mexico, Colombia, Nicaragua, Guatemala, Chile and El Salvador.

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