Wyndham Hotels & Resorts (NYSE:WH) and Marriott International (NASDAQ:MAR) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Valuation and Earnings
This table compares Wyndham Hotels & Resorts and Marriott International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wyndham Hotels & Resorts||$1.87 billion||3.11||$162.00 million||$2.71||22.01|
|Marriott International||$20.76 billion||2.27||$1.91 billion||$6.21||22.74|
Wyndham Hotels & Resorts pays an annual dividend of $1.16 per share and has a dividend yield of 1.9%. Marriott International pays an annual dividend of $1.92 per share and has a dividend yield of 1.4%. Wyndham Hotels & Resorts pays out 42.8% of its earnings in the form of a dividend. Marriott International pays out 30.9% 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 8 consecutive years.
This is a breakdown of recent ratings and price targets for Wyndham Hotels & Resorts and Marriott International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wyndham Hotels & Resorts||0||0||8||0||3.00|
Wyndham Hotels & Resorts currently has a consensus price target of $69.00, suggesting a potential upside of 15.69%. Marriott International has a consensus price target of $135.38, suggesting a potential downside of 4.15%. Given Wyndham Hotels & Resorts’ stronger consensus rating and higher probable upside, equities analysts plainly believe Wyndham Hotels & Resorts is more favorable than Marriott International.
Institutional and Insider Ownership
91.3% of Wyndham Hotels & Resorts shares are held by institutional investors. Comparatively, 62.8% of Marriott International shares are held by institutional investors. 1.9% of Wyndham Hotels & Resorts shares are held by insiders. Comparatively, 12.6% of Marriott International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Wyndham Hotels & Resorts and Marriott International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wyndham Hotels & Resorts||7.03%||18.80%||5.37%|
Marriott International beats Wyndham Hotels & Resorts on 10 of the 16 factors compared between the two stocks.
Wyndham Hotels & Resorts Company Profile
Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor worldwide. The company licenses its hotel brands, including Super 8, Days Inn, Ramada, Microtel Inn & Suites, La Quinta, Wingate, AmericInn, Hawthorn Suites, The Trademark Collection, and Wyndham to hotel owners in approximately 80 countries. Its Hotel Franchising segments licenses its lodging brands and provides related services to third-party hotel owners and others. The company's Hotel Management segment provides hotel management services for full-service and limited service hotels. Wyndham Hotels & Resorts, Inc. operates a portfolio of 20 hotel brands with approximately 9,200 franchised hotels with 810,000 rooms; and manages hotels, including 438 third-party-owned properties and 2 owned properties. It is also involved in the loyalty program business. The company was incorporated in 2017 and is headquartered in Parsippany, New Jersey.
Marriott International Company Profile
Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through North American Full-Service, North American Limited-Service, and Asia Pacific segments. It operates its properties under the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of April 10, 2019, it operated approximately 7,000 properties under 30 hotel brands in 130 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.
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