Wyndham Hotels & Resorts (NYSE:WH) and Extended Stay America (NYSE:STAY) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Profitability
This table compares Wyndham Hotels & Resorts and Extended Stay America's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Wyndham Hotels & Resorts | -2.50% | 21.25% | 4.99% |
| Extended Stay America | N/A | N/A | N/A |
Dividends
Wyndham Hotels & Resorts pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Extended Stay America pays an annual dividend of $0.36 per share and has a dividend yield of 1.8%. Wyndham Hotels & Resorts pays out 19.5% of its earnings in the form of a dividend. Wyndham Hotels & Resorts has raised its dividend for 1 consecutive years and Extended Stay America has raised its dividend for 1 consecutive years.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Wyndham Hotels & Resorts and Extended Stay America, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Wyndham Hotels & Resorts | 0 | 0 | 12 | 0 | 3.00 |
| Extended Stay America | 0 | 3 | 5 | 0 | 2.63 |
Wyndham Hotels & Resorts presently has a consensus price target of $59.0833, indicating a potential downside of 18.14%. Extended Stay America has a consensus price target of $17.2778, indicating a potential downside of 12.91%. Given Extended Stay America's higher probable upside, analysts clearly believe Extended Stay America is more favorable than Wyndham Hotels & Resorts.
Earnings & Valuation
This table compares Wyndham Hotels & Resorts and Extended Stay America's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Wyndham Hotels & Resorts | $2.05 billion | 3.28 | $157 million | $3.28 | 22.01 |
| Extended Stay America | N/A | N/A | N/A | N/A | N/A |
Wyndham Hotels & Resorts has higher revenue and earnings than Extended Stay America.
Institutional & Insider Ownership
93.0% of Wyndham Hotels & Resorts shares are held by institutional investors. Comparatively, 96.7% of Extended Stay America shares are held by institutional investors. 1.8% of Wyndham Hotels & Resorts shares are held by company insiders. Comparatively, 0.7% of Extended Stay America shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Wyndham Hotels & Resorts beats Extended Stay America on 6 of the 11 factors compared between the two stocks.
