Hyatt Hotels (NYSE:H) and Penn National Gaming (NASDAQ:PENN) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Earnings and Valuation
This table compares Hyatt Hotels and Penn National Gaming's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Hyatt Hotels | $5.02 billion | 1.77 | $766 million | $2.05 | 42.90 |
Penn National Gaming | $5.30 billion | 3.39 | $43.90 million | $0.37 | 312.92 |
Hyatt Hotels has higher earnings, but lower revenue than Penn National Gaming. Hyatt Hotels is trading at a lower price-to-earnings ratio than Penn National Gaming, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hyatt Hotels and Penn National Gaming's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Hyatt Hotels | -6.14% | -8.79% | -3.70% |
Penn National Gaming | -19.86% | -8.73% | -1.10% |
Risk and Volatility
Hyatt Hotels has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Penn National Gaming has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Hyatt Hotels and Penn National Gaming, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Hyatt Hotels | 3 | 14 | 0 | 0 | 1.82 |
Penn National Gaming | 2 | 4 | 12 | 0 | 2.56 |
Hyatt Hotels presently has a consensus target price of $58.1667, suggesting a potential downside of 33.86%. Penn National Gaming has a consensus target price of $94.1579, suggesting a potential downside of 18.68%. Given Penn National Gaming's stronger consensus rating and higher possible upside, analysts clearly believe Penn National Gaming is more favorable than Hyatt Hotels.
Insider and Institutional Ownership
36.8% of Hyatt Hotels shares are owned by institutional investors. Comparatively, 87.5% of Penn National Gaming shares are owned by institutional investors. 22.8% of Hyatt Hotels shares are owned by insiders. Comparatively, 1.8% of Penn National Gaming shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Penn National Gaming beats Hyatt Hotels on 10 of the 14 factors compared between the two stocks.