Hyatt Hotels Corporation (NYSE: H) and Marriott International (NASDAQ:MAR) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitabiliy.

Earnings & Valuation

This table compares Hyatt Hotels Corporation and Marriott International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hyatt Hotels Corporation $2.68 billion 2.57 $663.00 million $1.81 30.30
Marriott International $4.02 billion 9.68 $2.25 billion $2.78 36.95

Marriott International has higher revenue and earnings than Hyatt Hotels Corporation. Hyatt Hotels Corporation is trading at a lower price-to-earnings ratio than Marriott International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hyatt Hotels Corporation and Marriott International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hyatt Hotels Corporation 5.30% 7.25% 3.65%
Marriott International 4.91% 38.10% 6.17%

Dividends

Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. Hyatt Hotels Corporation does not pay a dividend. Marriott International pays out 47.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for Hyatt Hotels Corporation and Marriott International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hyatt Hotels Corporation 0 9 2 0 2.18
Marriott International 1 6 8 0 2.47

Hyatt Hotels Corporation currently has a consensus target price of $55.71, suggesting a potential upside of 1.58%. Marriott International has a consensus target price of $96.50, suggesting a potential downside of 6.05%. Given Hyatt Hotels Corporation’s higher probable upside, research analysts clearly believe Hyatt Hotels Corporation is more favorable than Marriott International.

Institutional & Insider Ownership

31.0% of Hyatt Hotels Corporation shares are owned by institutional investors. Comparatively, 67.0% of Marriott International shares are owned by institutional investors. 25.5% of Hyatt Hotels Corporation shares are owned by company insiders. Comparatively, 17.1% of Marriott International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Hyatt Hotels Corporation has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Summary

Marriott International beats Hyatt Hotels Corporation on 12 of the 16 factors compared between the two stocks.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation is a global hospitality company. The Company develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties. The Company operates through four segments: owned and leased hotels; Americas management and franchising (Americas); ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia). The owned and leased hotels segment consists of its owned and leased full service and select service hotels. The Americas segment consists of its management and franchising of properties located in the United States, Latin America, Canada and the Caribbean. The ASPAC segment consists of its management and franchising of properties located in Southeast Asia, as well as China, Australia, South Korea, Japan and Micronesia. The EAME/SW Asia segment consists of its management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia and Nepal.

About Marriott International

Marriott International, Inc. (Marriott International) is a lodging company. Marriott International operates in three business segments: North American Full-Service, North American Limited-Service and International. Its North American Full-Service segment includes its Luxury and Premium brands (JW Marriott, Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph Collection Hotels, Delta Hotels, Gaylord Hotels, and Tribute Portfolio) located in the United States and Canada. Its North American Limited-Service segment includes Select brands (Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Element Hotels and Moxy Hotels) located in the United States and Canada. Its International segment includes JW Marriott, St. Regis, EDITION, Bulgari Hotels & Resorts, Marriott Hotels, Sheraton, Westin, Four Points, Aloft Hotels, AC Hotels by Marriott, Protea Hotels, Element Hotels, and Moxy Hotels located outside the United States and Canada.

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