Analyzing Wynn Macau (OTCMKTS:WYNMY) and Hyatt Hotels (NYSE:H)

Wynn Macau (OTCMKTS:WYNMY) and Hyatt Hotels (NYSE:H) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Dividends

Wynn Macau pays an annual dividend of $0.40 per share and has a dividend yield of 4.5%. Hyatt Hotels pays an annual dividend of $0.60 per share and has a dividend yield of 0.4%. Hyatt Hotels pays out 14.3% of its earnings in the form of a dividend. Hyatt Hotels has increased its dividend for 1 consecutive years.

Institutional & Insider Ownership

73.5% of Hyatt Hotels shares are owned by institutional investors. 23.7% of Hyatt Hotels shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Wynn Macau and Hyatt Hotels”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	$3.68 billion	1.27	$410.01 million	N/A	N/A
Hyatt Hotels	$6.65 billion	2.11	$1.30 billion	$4.21	34.87

Hyatt Hotels has higher revenue and earnings than Wynn Macau.

Volatility and Risk

Wynn Macau has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Hyatt Hotels has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Wynn Macau and Hyatt Hotels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Macau	1	0	0	1	2.50
Hyatt Hotels	1	9	9	2	2.57

Hyatt Hotels has a consensus target price of $152.68, suggesting a potential upside of 4.01%. Given Hyatt Hotels’ stronger consensus rating and higher possible upside, analysts clearly believe Hyatt Hotels is more favorable than Wynn Macau.

Profitability

This table compares Wynn Macau and Hyatt Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wynn Macau	N/A	N/A	N/A
Hyatt Hotels	6.39%	6.54%	1.80%

Summary

Hyatt Hotels beats Wynn Macau on 14 of the 16 factors compared between the two stocks.

About Wynn Macau

Wynn Macau, Limited, through its subsidiaries, engages in the development, ownership, and operation of integrated destination casino resorts in Macau. The company's Wynn Palace resort features approximately 468,000 square feet of casino space providing 24-hour gaming and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; and food and beverage outlets. Its Wynn Palace resort also consists of approximately 107,000 square feet of retail shopping; 37,000 square feet of meeting and convention space; recreation and leisure facilities consisting of a cable car ride, health club, spa, salon, and pool; and public entertainment attractions, including a lake, animated floral art displays, and fine art displays. In addition, the company's Wynn Macau resort features approximately 294,000 square feet of casino space offering 24-hour gaming and various games, including private gaming salons, sky casinos, and a poker pit; hotel towers with rooms and suites; food and beverage outlets; and recreation and leisure facilities, such as health clubs and spas, a salon, and a pool. Further, its Wynn Macau resort includes approximately 64,300 square feet of brand-name retail shopping and 31,000 square feet of meeting and convention space. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited operates as a subsidiary of WM Cayman Holdings Limited I.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt vacation Club, Hyatt Place, Hyatt House, Hyatt Studios, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Dream Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotel & Resorts, Alua Hotels & Resorts, Sunscape Resorts & Spas, Maison Métier, and The Barnett brand name. The company offers short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that features direct booking for short-term private home rentals in the United States. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. It also operates World of Hyatt loyalty program, which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.