Analyzing Marriot Vacations Worldwide Corporation (NYSE:VAC) & China Lodging Group, Limited (HTHT)

Marriot Vacations Worldwide Corporation (NYSE: VAC) and China Lodging Group, Limited (NASDAQ:HTHT) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Marriot Vacations Worldwide Corporation pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. China Lodging Group, Limited does not pay a dividend. Marriot Vacations Worldwide Corporation pays out 25.2% of its earnings in the form of a dividend. Marriot Vacations Worldwide Corporation has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for Marriot Vacations Worldwide Corporation and China Lodging Group, Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marriot Vacations Worldwide Corporation 0 2 5 0 2.71
China Lodging Group, Limited 0 1 6 0 2.86

Marriot Vacations Worldwide Corporation presently has a consensus target price of $117.14, indicating a potential upside of 6.49%. China Lodging Group, Limited has a consensus target price of $77.17, indicating a potential downside of 29.07%. Given Marriot Vacations Worldwide Corporation’s higher probable upside, analysts clearly believe Marriot Vacations Worldwide Corporation is more favorable than China Lodging Group, Limited.

Risk & Volatility

Marriot Vacations Worldwide Corporation has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, China Lodging Group, Limited has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.

Profitability

This table compares Marriot Vacations Worldwide Corporation and China Lodging Group, Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marriot Vacations Worldwide Corporation 7.90% 16.96% 6.53%
China Lodging Group, Limited 13.69% 17.80% 9.76%

Insider & Institutional Ownership

79.1% of Marriot Vacations Worldwide Corporation shares are held by institutional investors. Comparatively, 45.6% of China Lodging Group, Limited shares are held by institutional investors. 3.3% of Marriot Vacations Worldwide Corporation shares are held by insiders. Comparatively, 49.4% of China Lodging Group, Limited shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Marriot Vacations Worldwide Corporation 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
Marriot Vacations Worldwide Corporation $1.36 billion 2.19 $268.31 million $5.56 19.78
China Lodging Group, Limited $996.83 million 7.54 $265.64 million $1.97 55.22

Marriot Vacations Worldwide Corporation has higher revenue and earnings than China Lodging Group, Limited. Marriot Vacations Worldwide Corporation 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.

Summary

China Lodging Group, Limited beats Marriot Vacations Worldwide Corporation on 10 of the 17 factors compared between the two stocks.

About Marriot Vacations Worldwide Corporation

Marriott Vacations Worldwide Corporation focuses on vacation ownership, based on number of owners, number of resorts and revenues. The Company is an exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The Company operates through three segments North America, Europe and Asia Pacific. In the North America segment, it develops, markets, sells and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. Its Europe segment is engaged in selling its existing projects and managing existing resorts. Its Asia Pacific segment, it develops, markets, sells and manages two points-based programs that it designed to appeal to the vacation preferences of the market, Marriott Vacation Club, Asia Pacific and Marriott Vacation Club Destinations, Australia, as well as a weeks-based right-to-use product.

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.

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