Reviewing Marriott International (MAR) and Wyndham Worldwide Corp (WYN)
Marriott International (NASDAQ: MAR) and Wyndham Worldwide Corp (NYSE:WYN) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
This table compares Marriott International and Wyndham Worldwide Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wyndham Worldwide Corp||10.17%||91.17%||6.28%|
Institutional & Insider Ownership
65.9% of Marriott International shares are owned by institutional investors. Comparatively, 95.0% of Wyndham Worldwide Corp shares are owned by institutional investors. 11.3% of Marriott International shares are owned by insiders. Comparatively, 2.4% of Wyndham Worldwide Corp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Marriott International has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Wyndham Worldwide Corp has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Marriott International and Wyndham Worldwide Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wyndham Worldwide Corp||1||3||4||0||2.38|
Marriott International currently has a consensus price target of $99.80, indicating a potential downside of 10.70%. Wyndham Worldwide Corp has a consensus price target of $100.43, indicating a potential downside of 6.19%. Given Wyndham Worldwide Corp’s higher possible upside, analysts clearly believe Wyndham Worldwide Corp is more favorable than Marriott International.
Valuation & Earnings
This table compares Marriott International and Wyndham Worldwide Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marriott International||$4.57 billion||9.11||$2.54 billion||$2.90||38.54|
|Wyndham Worldwide Corp||$5.24 billion||2.10||$1.34 billion||$5.39||19.86|
Marriott International has higher revenue, but lower earnings than Wyndham Worldwide Corp. Wyndham Worldwide Corp is trading at a lower price-to-earnings ratio than Marriott International, indicating that it is currently the more affordable of the two stocks.
Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.2%. Wyndham Worldwide Corp pays an annual dividend of $2.32 per share and has a dividend yield of 2.2%. Marriott International pays out 45.5% of its earnings in the form of a dividend. Wyndham Worldwide Corp pays out 43.0% 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 7 consecutive years. Wyndham Worldwide Corp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Wyndham Worldwide Corp beats Marriott International on 9 of the 16 factors compared between the two stocks.
Marriott International Company Profile
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.
Wyndham Worldwide Corp Company Profile
Wyndham Worldwide Corporation is a hospitality company. The Company offers a range of hospitality services and products through its global portfolio of brands. The Company operates through three segments: Wyndham Hotel Group, Wyndham Destination Network and Wyndham Vacation Ownership. The Company’s brands include Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Landal GreenParks, Novasol, Hoseasons, cottages.com, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club and WorldMark by Wyndham. As of December 31, 2016, its Wyndham Hotel Group had 8,035 hotels and over 697,600 hotel rooms around the world. Its Wyndham Destination Network segment offers non-hotel accommodations. The Wyndham Vacation Ownership segment develops and acquires vacation ownership resorts.
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