Wyndham Worldwide (NYSE: WYN) and China Lodging Group, Limited (NASDAQ:HTHT) are both mid-cap cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitabiliy.
This table compares Wyndham Worldwide and China Lodging Group, Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Lodging Group, Limited||13.29%||16.80%||9.09%|
This is a summary of current ratings and recommmendations for Wyndham Worldwide and China Lodging Group, Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Lodging Group, Limited||0||2||5||0||2.71|
Wyndham Worldwide presently has a consensus target price of $90.67, suggesting a potential downside of 11.67%. China Lodging Group, Limited has a consensus target price of $64.67, suggesting a potential downside of 30.50%. Given Wyndham Worldwide’s higher probable upside, equities analysts plainly believe Wyndham Worldwide is more favorable than China Lodging Group, Limited.
Insider and Institutional Ownership
93.1% of Wyndham Worldwide shares are owned by institutional investors. Comparatively, 44.7% of China Lodging Group, Limited shares are owned by institutional investors. 2.4% of Wyndham Worldwide shares are owned by company insiders. Comparatively, 49.4% of China Lodging Group, Limited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Wyndham Worldwide has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, China Lodging Group, Limited has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.
Earnings & Valuation
This table compares Wyndham Worldwide and China Lodging Group, Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Wyndham Worldwide||$5.17 billion||2.07||$1.33 billion||$6.03||17.02|
|China Lodging Group, Limited||$986.06 million||6.57||$262.76 million||$1.84||50.57|
Wyndham Worldwide has higher revenue and earnings than China Lodging Group, Limited. Wyndham Worldwide is trading at a lower price-to-earnings ratio than China Lodging Group, Limited, indicating that it is currently the more affordable of the two stocks.
Wyndham Worldwide pays an annual dividend of $2.32 per share and has a dividend yield of 2.3%. China Lodging Group, Limited does not pay a dividend. Wyndham Worldwide pays out 38.5% of its earnings in the form of a dividend. Wyndham Worldwide has raised its dividend for 7 consecutive years.
About Wyndham Worldwide
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.
About China Lodging Group, Limited
China Lodging Group, Limited is a holding company. The Company is a multi-brand hotel group in China with leased, manachised and franchised models. Under the lease model, the Company directly operates hotels located on leased properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers the Company appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees. The Company has approximately 620 leased hotels; over 2,070 manachised hotels and approximately 80 franchised hotels in operation and over 20 leased hotels and approximately 660 manachised and franchised hotels under development. The Company offers approximately seven hotel brands that focus on various segments of customers: Joya Hotel, Manxin Hotels & Resorts, JI Hotel, Starway Hotel, Elan Hotel, HanTing Hotel and Hi Inn.