Marriott International (NASDAQ: ERI) and Eldorado Resorts (NASDAQ:ERI) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Valuation & Earnings

This table compares Marriott International and Eldorado Resorts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marriott International $22.89 billion 1.98 $1.37 billion $4.36 29.92
Eldorado Resorts $1.47 billion 2.56 $73.93 million $0.01 4,885.00

Marriott International has higher revenue and earnings than Eldorado Resorts. Marriott International is trading at a lower price-to-earnings ratio than Eldorado Resorts, indicating that it is currently the more affordable of the two stocks.

Dividends

Marriott International pays an annual dividend of $1.64 per share and has a dividend yield of 1.3%. Eldorado Resorts does not pay a dividend. Marriott International pays out 37.6% of its earnings in the form of a dividend. Marriott International has raised its dividend for 7 consecutive years.

Profitability

This table compares Marriott International and Eldorado Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marriott International 7.31% 52.81% 8.02%
Eldorado Resorts 9.99% 11.64% 3.06%

Insider and Institutional Ownership

61.8% of Marriott International shares are owned by institutional investors. Comparatively, 88.3% of Eldorado Resorts shares are owned by institutional investors. 13.0% of Marriott International shares are owned by company insiders. Comparatively, 1.5% of Eldorado Resorts shares are owned 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.

Analyst Recommendations

This is a summary of current recommendations for Marriott International and Eldorado Resorts, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marriott International 0 8 5 0 2.38
Eldorado Resorts 0 1 7 0 2.88

Marriott International presently has a consensus price target of $144.36, indicating a potential upside of 10.68%. Eldorado Resorts has a consensus price target of $48.81, indicating a potential downside of 0.09%. Given Marriott International’s higher possible upside, analysts clearly believe Marriott International is more favorable than Eldorado Resorts.

Risk and Volatility

Marriott International has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Eldorado Resorts has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Summary

Marriott International beats Eldorado Resorts on 10 of the 17 factors compared between the two stocks.

Marriott International Company Profile

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through three segments: North American Full-Service, North American Limited-Service, and Asia Pacific. It operates its properties under the JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Westin, Renaissance, Le Méridien, Autograph Collection, Delta Hotels, Gaylord Hotels, Marriott Executive Apartments, Marriott Vacation Club, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of June 7, 2018, it operated, franchised, and licensed approximately 6,500 properties in 127 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.

Eldorado Resorts Company Profile

Eldorado Resorts, Inc., a gaming and hospitality company, owns and operates gaming facilities in Ohio, Louisiana, Nevada, Pennsylvania, West Virginia, Colorado, Florida, Iowa, Mississippi, and Missouri. It owns and operates Eldorado Resort Casino Reno, a 814-room hotel, casino and entertainment facility; Silver Legacy Resort Casino, a 1,711-room themed hotel and casino; Circus Circus Reno, a 1,571-room hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a 403-room, all suite art deco-style hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a 357-room hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino. The company also owns and operates Isle Casino Hotel?Black Hawk, a land-based casino; Lady Luck Casino?Black Hawk, a land-based casino; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based single-level casino; Isle Casino Waterloo, a SINGLE-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a gaming vessel; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg, a dockside casino; Isle of Capri Casino Boonville, a single-level dockside casino; Isle Casino Cape Girardeau, a dockside casino and pavilion and entertainment center; Lady Luck Casino Caruthersville, a riverboat casino; Isle of Capri Casino Kansas City, a dockside casino; and Lady Luck Casino Nemacolin, a casino property, as well as operates Racelinebet.com, which offers online and telephone wagering services on horse races. As of December 31, 2017, it owned and operated approximately 950,000 square feet of casino space with approximately 21,000 slot machines and video lottery terminals, 600 table and poker games, and 7,000 hotel rooms. Eldorado Resorts, Inc. was founded in 1973 and is based in Reno, Nevada.

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