Belmond (NYSE: BEL) and Marcus Corporation (The) (NYSE:MCS) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Institutional & Insider Ownership
75.6% of Belmond shares are owned by institutional investors. Comparatively, 57.9% of Marcus Corporation (The) shares are owned by institutional investors. 87.6% of Belmond shares are owned by company insiders. Comparatively, 33.5% of Marcus Corporation (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Belmond and Marcus Corporation (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marcus Corporation (The)||7.18%||10.78%||4.71%|
Volatility & Risk
Belmond has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Marcus Corporation (The) has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Marcus Corporation (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. Belmond does not pay a dividend. Marcus Corporation (The) pays out 33.1% of its earnings in the form of a dividend. Belmond has increased its dividend for 5 consecutive years.
This is a summary of recent ratings and price targets for Belmond and Marcus Corporation (The), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marcus Corporation (The)||0||0||4||0||3.00|
Belmond currently has a consensus target price of $14.25, suggesting a potential upside of 15.38%. Marcus Corporation (The) has a consensus target price of $37.60, suggesting a potential upside of 53.47%. Given Marcus Corporation (The)’s stronger consensus rating and higher possible upside, analysts clearly believe Marcus Corporation (The) is more favorable than Belmond.
Earnings & Valuation
This table compares Belmond and Marcus Corporation (The)’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Belmond||$558.66 million||2.26||$107.25 million||$0.07||176.43|
|Marcus Corporation (The)||$594.17 million||0.79||$125.32 million||$1.51||16.23|
Marcus Corporation (The) has higher revenue and earnings than Belmond. Marcus Corporation (The) is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.
Marcus Corporation (The) beats Belmond on 10 of the 17 factors compared between the two stocks.
Belmond Ltd. (Belmond) is a hotel company and adventure travel operator. As of December 31, 2016, Belmond owned, partially-owned and/or operated 45 properties, consisting of 34 individual deluxe hotels, 29 of which are owned (including nine under long-term lease), five European tourist trains, two cruise ships in Myanmar (one of which is under long-term charter), one French canal cruise business consisting of five small canal boats, and one stand-alone restaurant in the United States. It operates through six segments: owned hotels in Europe, owned hotels in North America (including one stand-alone restaurant), owned hotels in Rest of world, owned trains and cruises, part-owned/managed hotels and part-owned/managed trains. As of December 31, 2016, Belmond’s around the world portfolio of hotels in operation consisted of 3,272 individual guest rooms and multiple-room suites (keys).
About Marcus Corporation (The)
The Marcus Corporation operates principally in two business segments: Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Ohio, Minnesota, Iowa, North Dakota and Nebraska, and a family entertainment center in Wisconsin. The Hotels and Resorts segment owns and operates hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska, and manages hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, Georgia, Florida and California. As of December 31, 2015, the Company owned or operated 53 movie theatre locations with a total of 668 screens in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. Its owned and operated hotels and resorts include The Pfister Hotel, The Hilton Milwaukee City Center, Hilton Madison at Monona Terrace, The Grand Geneva Resort & Spa, InterContinental Milwaukee, Skirvin Hilton, AC Hotel Chicago Downtown and The Lincoln Marriott Cornhusker Hotel.
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