ILG (NASDAQ: ILG) and ClubCorp Holdings (NYSE:MYCC) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitabiliy, institutional ownership and earnings.

Dividends

ILG pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. ClubCorp Holdings pays an annual dividend of $0.52 per share and has a dividend yield of 3.1%. ILG pays out 22.3% of its earnings in the form of a dividend. ClubCorp Holdings pays out -5,194.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ClubCorp Holdings is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and recommmendations for ILG and ClubCorp Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ILG 0 0 5 0 3.00
ClubCorp Holdings 0 3 5 0 2.63

ILG currently has a consensus price target of $26.20, suggesting a potential downside of 2.57%. ClubCorp Holdings has a consensus price target of $18.88, suggesting a potential upside of 11.36%. Given ClubCorp Holdings’ higher possible upside, analysts plainly believe ClubCorp Holdings is more favorable than ILG.

Profitability

This table compares ILG and ClubCorp Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ILG 17.63% 11.66% 5.72%
ClubCorp Holdings -0.04% 9.50% 0.66%

Risk & Volatility

ILG has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, ClubCorp Holdings has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares ILG and ClubCorp Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ILG $1.22 billion 2.75 $287.00 million $2.69 10.00
ClubCorp Holdings $1.10 billion 1.01 $203.96 million ($0.01) -1,693.31

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

Institutional & Insider Ownership

82.7% of ILG shares are held by institutional investors. Comparatively, 94.7% of ClubCorp Holdings shares are held by institutional investors. 2.0% of ILG shares are held by company insiders. Comparatively, 2.9% of ClubCorp Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

ILG beats ClubCorp Holdings on 9 of the 14 factors compared between the two stocks.

About ILG

ILG, Inc., formerly Interval Leisure Group, Inc., is a provider of professionally delivered vacation experiences. The Company is a global licensee for the Hyatt, Westin and Sheraton brands in vacation ownership. The Company operates through two segments: Exchange and Rental, and Vacation Ownership. Its Exchange and Rental segment offers access to vacation accommodations and other travel-related transactions and services to leisure travelers, by providing vacation exchange services and vacation rental, working with resort developers and operating vacation rental properties. Its Vacation Ownership segment engages in the management of vacation ownership resorts; sales, marketing, and financing of vacation ownership interests, and related services to owners and associations. The Company offers leisure and travel-related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients.

About ClubCorp Holdings

ClubCorp Holdings, Inc., incorporated on November 10, 2010, is engaged in membership-based leisure business. The Company is also the owner-operator of private golf and country clubs, and business, sports and alumni clubs in North America. The Company operates through two segments: golf and country clubs, and business, sports and alumni clubs. The golf and country club segment includes private country clubs, golf clubs and public golf facilities. The business, sports and alumni club segment includes business clubs, business/sports clubs, sports clubs and alumni clubs. As of April 12, 2017 it owned or operated a portfolio of over 200 golf and country clubs, business clubs, sports clubs, and alumni clubs in 27 states, the District of Columbia and two foreign countries that serve over 430,000 members. The Company’s facilities are located in areas, such as Los Angeles, San Francisco, Atlanta, Columbus, Houston, Las Vegas and Richmond.

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