Marriott International (NASDAQ: MAR) and Intercontinental Hotels Group (NYSE:IHG) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Institutional & Insider Ownership
67.1% of Marriott International shares are held by institutional investors. Comparatively, 6.8% of Intercontinental Hotels Group shares are held by institutional investors. 17.1% of Marriott International shares are held by company 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.
Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. Intercontinental Hotels Group pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Marriott International pays out 45.5% of its earnings in the form of a dividend. Intercontinental Hotels Group has increased its dividend for 4 consecutive years. Intercontinental Hotels Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and recommmendations for Marriott International and Intercontinental Hotels Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Intercontinental Hotels Group||2||4||2||0||2.00|
Marriott International currently has a consensus price target of $99.00, suggesting a potential upside of 0.99%. Intercontinental Hotels Group has a consensus price target of $44.00, suggesting a potential downside of 12.91%. Given Marriott International’s stronger consensus rating and higher probable upside, equities analysts plainly believe Marriott International is more favorable than Intercontinental Hotels Group.
Volatility & Risk
Marriott International has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Intercontinental Hotels Group has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Earnings & Valuation
This table compares Marriott International and Intercontinental Hotels Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marriott International||$4.57 billion||7.99||$2.54 billion||$2.90||33.80|
|Intercontinental Hotels Group||$1.73 billion||5.55||$780.00 million||N/A||N/A|
Marriott International has higher revenue and earnings than Intercontinental Hotels Group.
This table compares Marriott International and Intercontinental Hotels Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Intercontinental Hotels Group||N/A||N/A||N/A|
Marriott International beats Intercontinental Hotels Group on 13 of the 16 factors compared between the two stocks.
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.
About Intercontinental Hotels Group
InterContinental Hotels Group PLC is a hotel company. The Company franchises its brands to, and manages hotels on behalf of, third-party hotel owners. Its segments include The Americas; Europe; Asia, Middle East and Africa (AMEA); Greater China, and Central. It operates a portfolio of hotel brands, including InterContinental, HUALUXE, Kimpton, Crowne Plaza, Hotel Indigo, EVEN Hotels, Holiday Inn, Holiday Inn Express, Staybridge Suites Hotels, Holiday Inn Resort, Holiday Inn Club Vacations and Candlewood Suites Hotels. As of December 31, 2016, The Americas pipeline totaled 945 hotels (102,451 rooms). As of December 31, 2016, the Europe pipeline totaled 137 hotels (23,954 rooms). As of December 31, 2016, the AMEA pipeline totaled 149 hotels (39,643 rooms). As of December 31, 2016, the Greater China pipeline totaled 239 hotels (64,028 rooms). As of April 21, 2017, it had 5,200 hotels and 777,000 rooms in its system. As of April 21, 2017, it operated in over 100 countries globally.
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