Financial Comparison: United Parks & Resorts (NYSE:PRKS) and Travel + Leisure (NYSE:TNL)

United Parks & Resorts (NYSE:PRKS) and Travel + Leisure (NYSE:TNL) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares United Parks & Resorts and Travel + Leisure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parks & Resorts	$1.73 billion	1.21	$227.50 million	$3.27	11.71
Travel + Leisure	$3.86 billion	1.17	$411.00 million	$6.08	11.55

Travel + Leisure has higher revenue and earnings than United Parks & Resorts. Travel + Leisure is trading at a lower price-to-earnings ratio than United Parks & Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares United Parks & Resorts and Travel + Leisure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Parks & Resorts	10.83%	-44.47%	6.88%
Travel + Leisure	10.36%	-49.06%	6.24%

Analyst Recommendations

This is a summary of current ratings for United Parks & Resorts and Travel + Leisure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parks & Resorts	2	7	4	0	2.15
Travel + Leisure	0	2	7	1	2.90

United Parks & Resorts currently has a consensus target price of $50.82, suggesting a potential upside of 32.76%. Travel + Leisure has a consensus target price of $75.25, suggesting a potential upside of 7.16%. Given United Parks & Resorts’ higher possible upside, equities analysts clearly believe United Parks & Resorts is more favorable than Travel + Leisure.

Volatility and Risk

United Parks & Resorts has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

87.5% of Travel + Leisure shares are held by institutional investors. 1.2% of United Parks & Resorts shares are held by insiders. Comparatively, 3.8% of Travel + Leisure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Travel + Leisure beats United Parks & Resorts on 9 of the 15 factors compared between the two stocks.

About United Parks & Resorts

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.