Steiner Leisure (NASDAQ: STNR) and ILG (NASDAQ:ILG) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitabiliy, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares Steiner Leisure and ILG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Steiner Leisure -7.69% -40.01% -12.91%
ILG 7.32% 11.41% 5.50%

Analyst Recommendations

This is a summary of current ratings for Steiner Leisure and ILG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Steiner Leisure 0 0 0 0 N/A
ILG 0 0 5 0 3.00

ILG has a consensus target price of $26.20, indicating a potential upside of 0.54%. Given ILG’s higher possible upside, analysts plainly believe ILG is more favorable than Steiner Leisure.

Dividends

ILG pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Steiner Leisure does not pay a dividend. ILG pays out 57.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Steiner Leisure and ILG’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Steiner Leisure N/A N/A N/A N/A N/A
ILG $1.22 billion 2.67 $287.00 million $1.04 25.06

ILG has higher revenue and earnings than Steiner Leisure.

Institutional & Insider Ownership

82.0% of ILG shares are owned by institutional investors. 2.0% of ILG shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

ILG beats Steiner Leisure on 9 of the 10 factors compared between the two stocks.

About Steiner Leisure

Steiner Leisure Limited is a United States-based global provider of spa services, medi-spa services. The Company manufactures and distributes skin, body and hair care products. It is an accredited educator teaching students the skills necessary to be a spa professional, including massage, skincare and spa management. The Company’s product brands include Bliss, Elemis, Jou, La Therapie, Mandara and Steiner skincare, wellness and haircare products. Its brands are distributed through the Company operated day spas, resorts and spas-at-sea. The Company’s maritime and resort spa divisions operate in over approximately 200 venues on land and at sea. Its education group operates schools at around 17 campuses located in Arizona, Colorado, Connecticut, Florida, Maryland, Nevada, Pennsylvania, Utah and Virginia. Its Ideal Image is spa with over approximately 70 facilities in the United States, which provides laser hair removal for men and women.

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.

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