Contrasting Wyndham Worldwide Corp (WYN) and Marriott International (MAR)
Wyndham Worldwide Corp (NYSE: WYN) and Marriott International (NASDAQ:MAR) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
Insider and Institutional Ownership
94.8% of Wyndham Worldwide Corp shares are held by institutional investors. Comparatively, 65.9% of Marriott International shares are held by institutional investors. 2.4% of Wyndham Worldwide Corp shares are held by insiders. Comparatively, 11.3% of Marriott International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Wyndham Worldwide Corp and Marriott International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Wyndham Worldwide Corp||$5.24 billion||2.06||$1.34 billion||$5.39||19.52|
|Marriott International||$4.57 billion||8.79||$2.54 billion||$2.90||37.20|
Marriott International has higher revenue, but lower earnings than Wyndham Worldwide Corp. Wyndham Worldwide Corp is trading at a lower price-to-earnings ratio than Marriott International, indicating that it is currently the more affordable of the two stocks.
This table compares Wyndham Worldwide Corp and Marriott International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wyndham Worldwide Corp||10.17%||91.17%||6.28%|
This is a summary of current recommendations and price targets for Wyndham Worldwide Corp and Marriott International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wyndham Worldwide Corp||1||4||4||0||2.33|
Wyndham Worldwide Corp presently has a consensus price target of $96.88, indicating a potential downside of 7.94%. Marriott International has a consensus price target of $99.80, indicating a potential downside of 7.49%. Given Marriott International’s stronger consensus rating and higher possible upside, analysts plainly believe Marriott International is more favorable than Wyndham Worldwide Corp.
Risk and Volatility
Wyndham Worldwide Corp has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Wyndham Worldwide Corp pays an annual dividend of $2.32 per share and has a dividend yield of 2.2%. Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.2%. Wyndham Worldwide Corp pays out 43.0% of its earnings in the form of a dividend. Marriott International pays out 45.5% 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. Marriott International has raised its dividend for 7 consecutive years. Wyndham Worldwide Corp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Marriott International beats Wyndham Worldwide Corp on 9 of the 17 factors compared between the two stocks.
Wyndham Worldwide Corp Company Profile
Wyndham Worldwide Corporation is a hospitality company. The Company offers a range of hospitality services and products through its global portfolio of brands. The Company operates through three segments: Wyndham Hotel Group, Wyndham Destination Network and Wyndham Vacation Ownership. The Company’s brands include Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Landal GreenParks, Novasol, Hoseasons, cottages.com, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club and WorldMark by Wyndham. As of December 31, 2016, its Wyndham Hotel Group had 8,035 hotels and over 697,600 hotel rooms around the world. Its Wyndham Destination Network segment offers non-hotel accommodations. The Wyndham Vacation Ownership segment develops and acquires vacation ownership resorts.
Marriott International Company Profile
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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