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

Risk and Volatility

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International Speedway has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for International Speedway and Marriott International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Speedway 1 0 0 0 1.00
Marriott International 1 7 9 0 2.47

International Speedway currently has a consensus target price of $40.00, suggesting a potential downside of 9.40%. Marriott International has a consensus target price of $123.21, suggesting a potential downside of 12.33%. Given International Speedway’s higher possible upside, equities research analysts plainly believe International Speedway is more favorable than Marriott International.

Dividends

International Speedway pays an annual dividend of $0.43 per share and has a dividend yield of 1.0%. Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 0.9%. International Speedway pays out 17.3% of its earnings in the form of a dividend. Marriott International pays out 36.7% 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 increased its dividend for 12 consecutive years. International Speedway is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares International Speedway and Marriott International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
International Speedway $671.43 million 2.91 $110.82 million $2.49 17.73
Marriott International $22.89 billion 2.19 $1.37 billion $3.60 39.04

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

Insider and Institutional Ownership

52.0% of International Speedway shares are held by institutional investors. Comparatively, 65.6% of Marriott International shares are held by institutional investors. 43.1% of International Speedway shares are held by insiders. Comparatively, 11.3% of Marriott International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares International Speedway and Marriott International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Speedway 16.50% 5.09% 3.24%
Marriott International 5.99% 36.15% 6.90%

Summary

Marriott International beats International Speedway on 11 of the 17 factors compared between the two stocks.

About International Speedway

International Speedway Corporation is an owner of motorsports entertainment facilities and promoter of motorsports themed entertainment activities in the United States. The Company’s motorsports themed event operations consist of racing events at its motorsports entertainment facilities. As of November 30, 2016, the Company owned and/or operated 13 of the nation’s motorsports entertainment facilities: Daytona International Speedway in Florida; Talladega Superspeedway in Alabama; Michigan International Speedway in Michigan; Auto Club Speedway of Southern California in California; Kansas Speedway in Kansas; Richmond International Raceway in Virginia; Darlington Raceway in South Carolina; Chicagoland Speedway in Illinois; Martinsville Speedway in Virginia; Phoenix International Raceway in Arizona; Homestead-Miami Speedway in Florida; Watkins Glen International in New York, and Route 66 Raceway in Illinois.

About Marriott International

Marriott International, Inc. (Marriott International) is a lodging company. Marriott International operates in three business segments: North American Full-Service, North American Limited-Service and International. Its North American Full-Service segment includes its Luxury and Premium brands (JW Marriott, Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph Collection Hotels, Delta Hotels, Gaylord Hotels, and Tribute Portfolio) located in the United States and Canada. Its North American Limited-Service segment includes Select brands (Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Element Hotels and Moxy Hotels) located in the United States and Canada. Its International segment includes JW Marriott, St. Regis, EDITION, Bulgari Hotels & Resorts, Marriott Hotels, Sheraton, Westin, Four Points, Aloft Hotels, AC Hotels by Marriott, Protea Hotels, Element Hotels, and Moxy Hotels located outside the United States and Canada.

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