Mitsubishi Estate (MITEY) & Marriott Vacations Worldwide (VAC) Critical Review

Mitsubishi Estate (OTCMKTS: MITEY) and Marriott Vacations Worldwide (NYSE:VAC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

0.1% of Mitsubishi Estate shares are owned by institutional investors. Comparatively, 72.9% of Marriott Vacations Worldwide shares are owned by institutional investors. 3.5% of Marriott Vacations Worldwide 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.

Volatility & Risk

Mitsubishi Estate has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Marriott Vacations Worldwide has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mitsubishi Estate and Marriott Vacations Worldwide, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitsubishi Estate 0 0 0 0 N/A
Marriott Vacations Worldwide 0 2 9 0 2.82

Marriott Vacations Worldwide has a consensus price target of $138.96, indicating a potential upside of 16.04%. Given Marriott Vacations Worldwide’s higher probable upside, analysts clearly believe Marriott Vacations Worldwide is more favorable than Mitsubishi Estate.

Profitability

This table compares Mitsubishi Estate and Marriott Vacations Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitsubishi Estate 10.06% 6.63% 2.12%
Marriott Vacations Worldwide 11.25% 16.31% 6.02%

Valuation & Earnings

This table compares Mitsubishi Estate and Marriott Vacations Worldwide’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitsubishi Estate $10.78 billion 2.31 $1.08 billion N/A N/A
Marriott Vacations Worldwide $1.95 billion 1.63 $226.77 million $5.78 20.72

Mitsubishi Estate has higher revenue and earnings than Marriott Vacations Worldwide.

Dividends

Mitsubishi Estate pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Marriott Vacations Worldwide pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Marriott Vacations Worldwide pays out 27.7% of its earnings in the form of a dividend. Marriott Vacations Worldwide has raised its dividend for 3 consecutive years. Marriott Vacations Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Marriott Vacations Worldwide beats Mitsubishi Estate on 10 of the 15 factors compared between the two stocks.

Mitsubishi Estate Company Profile

Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company engages in the development, leasing, property management, and sale of office buildings. It also operates outlets and other retail facilities; offers services for various needs of condominiums, custom-built housing, purchase and sales, leasing, brokerage areas, renovations, and management; and develops residential, commercial facility, and other real estate properties. In addition, the company provides real estate investment trust services to meet management needs for long-term stability, as well as private placement funds to meet the specific management needs of institutional investors. Further, it offers architectural design and engineering services, including construction, civil engineering, and urban and regional development planning and consulting. Additionally, the company operates a network of eight hotels under the Royal Park Hotels brand; and provides real estate problem-solving solutions for corporations and high net worth individuals, such as real estate brokerage, condominium and office building leasing management support, parking lot management support, and real estate appraisal. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.

Marriott Vacations Worldwide Company Profile

Marriott Vacations Worldwide Corporation develops, markets, sells, and manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, and Marriott Vacation Club Pulse brands. It operates through three segments: North America, Asia Pacific, and Europe. The company also develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, it sells two points-based vacation ownership products through Marriott Vacation Club points-based ownership programs focused in North America and the Asia Pacific; and weeks-based vacation ownership products. Further, it is involved in financing consumer purchases of vacation ownership products; and renting vacation ownership inventory. Additionally, the company provides on-site management and services, such as daily housekeeping services, valet, in-residence dining, and access to fitness facilities, as well as spa and sports facilities for Ritz-Carlton branded properties. As of December 30, 2017, Marriott Vacations Worldwide Corporation operated 65 properties with 13,654 vacation ownership villas and approximately 400,000 owners in the United States, and 9 other countries and territories. It sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. Marriott Vacations Worldwide Corporation is headquartered in Orlando, Florida.

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