ONE Group Hospitality (NASDAQ:STKS – Get Free Report) and Travel + Leisure (NYSE:TNL – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Risk & Volatility
ONE Group Hospitality has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Profitability
This table compares ONE Group Hospitality and Travel + Leisure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ONE Group Hospitality | -10.25% | -10.49% | -0.62% |
| Travel + Leisure | 5.81% | -46.91% | 6.59% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Group Hospitality | $805.72 million | 0.06 | -$92.24 million | ($3.80) | -0.42 |
| Travel + Leisure | $4.02 billion | 0.94 | $230.00 million | $3.66 | 16.89 |
Travel + Leisure has higher revenue and earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
29.1% of ONE Group Hospitality shares are owned by institutional investors. Comparatively, 87.5% of Travel + Leisure shares are owned by institutional investors. 25.7% of ONE Group Hospitality shares are owned by insiders. Comparatively, 4.0% of Travel + Leisure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for ONE Group Hospitality and Travel + Leisure, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Group Hospitality | 1 | 2 | 1 | 0 | 2.00 |
| Travel + Leisure | 0 | 3 | 11 | 0 | 2.79 |
ONE Group Hospitality presently has a consensus target price of $4.00, suggesting a potential upside of 151.57%. Travel + Leisure has a consensus target price of $87.58, suggesting a potential upside of 41.71%. Given ONE Group Hospitality’s higher possible upside, analysts plainly believe ONE Group Hospitality is more favorable than Travel + Leisure.
Summary
Travel + Leisure beats ONE Group Hospitality on 10 of the 14 factors compared between the two stocks.
About ONE Group Hospitality
The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.
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.
Receive News & Ratings for ONE Group Hospitality Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ONE Group Hospitality and related companies with MarketBeat.com's FREE daily email newsletter.
