Wyndham Hotels & Resorts (NYSE:WH) & Portillo’s (NASDAQ:PTLO) Head-To-Head Contrast

Portillo’s (NASDAQ:PTLO) and Wyndham Hotels & Resorts (NYSE:WH) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares Portillo’s and Wyndham Hotels & Resorts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Portillo’s	$732.07 million	0.42	$19.34 million	$0.18	22.67
Wyndham Hotels & Resorts	$1.43 billion	3.62	$193.00 million	$2.72	25.60

Wyndham Hotels & Resorts has higher revenue and earnings than Portillo’s. Portillo’s is trading at a lower price-to-earnings ratio than Wyndham Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Portillo’s and Wyndham Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Portillo’s	1.85%	2.78%	0.86%
Wyndham Hotels & Resorts	14.67%	74.22%	8.58%

Institutional & Insider Ownership

98.3% of Portillo’s shares are held by institutional investors. Comparatively, 93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. 6.3% of Portillo’s shares are held by insiders. Comparatively, 2.3% of Wyndham Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Portillo’s and Wyndham Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portillo’s	1	10	2	0	2.08
Wyndham Hotels & Resorts	0	5	8	0	2.62

Portillo’s currently has a consensus target price of $5.92, suggesting a potential upside of 45.19%. Wyndham Hotels & Resorts has a consensus target price of $95.64, suggesting a potential upside of 37.35%. Given Portillo’s’ higher possible upside, analysts clearly believe Portillo’s is more favorable than Wyndham Hotels & Resorts.

Volatility and Risk

Portillo’s has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Wyndham Hotels & Resorts has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Summary

Wyndham Hotels & Resorts beats Portillo’s on 10 of the 14 factors compared between the two stocks.

About Portillo’s

Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.