Analyzing BJ’s Restaurants (NASDAQ:BJRI) and Marriott Vacations Worldwide (NYSE:VAC)

BJ’s Restaurants (NASDAQ:BJRI) and Marriott Vacations Worldwide (NYSE:VAC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares BJ’s Restaurants and Marriott Vacations Worldwide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Restaurants	$1.46 billion	0.85	$48.81 million	$2.09	27.05
Marriott Vacations Worldwide	$5.27 billion	0.77	-$308.00 million	($7.43)	-15.79

BJ’s Restaurants has higher earnings, but lower revenue than Marriott Vacations Worldwide. Marriott Vacations Worldwide is trading at a lower price-to-earnings ratio than BJ’s Restaurants, indicating that it is currently the more affordable of the two stocks.

Dividends

BJ’s Restaurants pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Marriott Vacations Worldwide pays an annual dividend of $3.20 per share and has a dividend yield of 2.7%. BJ’s Restaurants pays out 24.9% of its earnings in the form of a dividend. Marriott Vacations Worldwide pays out -43.1% 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 Vacations Worldwide has raised its dividend for 1 consecutive years. Marriott Vacations Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares BJ’s Restaurants and Marriott Vacations Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BJ’s Restaurants	3.13%	14.17%	5.49%
Marriott Vacations Worldwide	-4.75%	14.36%	3.06%

Volatility & Risk

BJ’s Restaurants has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Marriott Vacations Worldwide has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for BJ’s Restaurants and Marriott Vacations Worldwide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Restaurants	1	5	3	0	2.22
Marriott Vacations Worldwide	2	4	8	0	2.43

BJ’s Restaurants currently has a consensus target price of $62.00, indicating a potential upside of 9.66%. Marriott Vacations Worldwide has a consensus target price of $111.91, indicating a potential downside of 4.60%. Given BJ’s Restaurants’ higher possible upside, equities analysts clearly believe BJ’s Restaurants is more favorable than Marriott Vacations Worldwide.

Institutional and Insider Ownership

99.9% of BJ’s Restaurants shares are held by institutional investors. Comparatively, 89.5% of Marriott Vacations Worldwide shares are held by institutional investors. 2.4% of BJ’s Restaurants shares are held by company insiders. Comparatively, 13.3% of Marriott Vacations Worldwide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

BJ’s Restaurants beats Marriott Vacations Worldwide on 9 of the 17 factors compared between the two stocks.

About BJ’s Restaurants

BJ’s Restaurants, Inc. operates casual-dining restaurants under the BJ’s Restaurant & Brewhouse name. The company traces its roots to 1978, when it began as BJ’s Chicago Pizzeria in California. Its menu includes deep-dish and other pizzas, burgers, salads, pasta, ribs, appetizers and desserts, including its signature Pizookie. Restaurants also offer a selection of handcrafted beers alongside other beverages. BJ’s serves guests through restaurants in multiple U.S. states, with locations combining a broad food menu and beer offerings in a casual dining setting.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation is a global vacation ownership and leisure company. It develops, markets and sells vacation ownership interests, and operates and manages resorts and related vacation programs. Its portfolio includes Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club and other vacation ownership brands. The company also offers vacation exchange, rental and membership services, including through Interval International. Its resorts and programs serve travelers in destinations across the Americas, the Caribbean, Europe and the Asia-Pacific region.